Retail Supplies

As the title suggests, these are the basic formulas used in the retail supply chain to manage inventory, sales measurement, etc.

Average Inventory

Average Inventory (months) = (start + end inventory Month Month Inventory) a· 2

Formula retail base

Cost of goods + Markup = Retail Price
Cost Price Markup - goods =
Cost Price Markup - = goods

Even retail-analysis

Breakeven ($) = Fixed Costs a· Gross margin percentage

Contribution Margin

Total Margin = Sales - Variable Costs

Cost of goods sold

COGS = Beginning Inventory + Purchases - Ending Inventory

Gross

Gross Profit = Total Sales - Cost of Goods

Gross Margin Return on Investment

GMROI = Gross Margin Cost $ a· Average Inventory

Initial Markup Markup% = (+ expenses + reductions Profit) a· (Net sales + Reductions) Inventory Turnover (Rotation of stocks or stocks turn)

Turnover Turnover = a· Average Shares retail

Maintained Markup

MM $ = (Reductions original retail -) - Cost of goods sold
MM =% Markup held a· $ Net sales

Margin%

% Margin = (Price - Cost) a· Price

Markup

$ Markup = Retail price - Cost
Markup Markup% = Amount a· Price

Net sales

Net Sales = Gross Sales - Returns and allowances

Open to Buy

OTB (retail) = Planned Sales + Planned Markdowns + Planned end of inventory - Beginning of Month Inventory Planned

Discounts

Reductions = markdowns employee discount + discounts to customers stockouts + +

Sales per square foot

Sales per square foot = Net sales a· total square feet of selling space

Stock Sales Ratio

Stock-to-Sales = Beginning of Month Stock a· sales for the month

You can find more information like this to www.retailedi.com