8/2/2019 Retail Measures and Inventory Measures Assignment

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Retail Measures and InventoryMeasures

By,Siddartha Rayapudi

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Measures in Retail Retail sales

Unit sales

Square feet returns

Gross Margin Gross Profit

Store Unit Capacity

Average Transaction value

Return on investment

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Measures in Inventory Bill of materials

Average stock

Sales Turnover

Sell Through Stock to sales ratio

Weeks of supply

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Retail in detail Retail sales consists of the sale of physical

goods or merchandise from a fixed location

Unit sales In retail, sales per unit area is astandard and usually the primary measurement ofstore success

Square feet returns is something earned persquare feet of investment made by any retailoutlet

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Gross margin, gross profit margin or gross profit

rate is the difference between the production costsexcluding overhead, payroll, taxation, and interest

payments and sales revenue.

gross profit or sales profit is the differencebetween revenue and the cost of making a productor providing a service, before deducting overhead,payroll, taxation, and interest payments.

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The average transaction Value is calculated bydividing the Value of all transactions by thenumber of transactions on a daily, weekly,monthly, or annual basis.

Return on investment (ROI), rate of profit orsometimes just return, is the ratio of moneygained or lost (whether realized or unrealized) on

an investment relative to the amount of moneyinvested.

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Inventory In Detail A bill of materials (sometimes bill of material or

BOM) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the

quantities of each needed to manufacture an endproduct.

The average value of stock during a financial

year, calculated by adding together the values ofthe stock at the beginning and end of the yearand dividing by two

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Sales turnover is purely the revenue from sellinga good or service. It excludes things like return oninvestment, interest earned and assetappreciation which are also included in the

annual turnover.

In publishing, sell-through refers to a percentageof units shipped which are actually sold. In the

case of books, the rest is returned to thepublisher. Other items, such as software, areusually discounted.

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The stock to sales ratio is a way to determine therelationship between how much stock is presenthave and how much is being sold.

Weeks of supply tells the inventory manager howlong the current on hand will last based oncurrent sales demand.

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Thank You