To make sales, goods are needed by the retailers. The biggest asset is the retailer’s inventory for the retailers. As there is no enough stock of goods, that may result in low sales and carrying large inventory increases the costs and decreases the margin. And these two situations reduce the profit. The efficiency of the reseller’s inventory management is stock-turn rate (Inventory turnover rate for producers). The key to succeed in the retailing business is realizing a heavy quantity of sales on a small inventory as probable while maintaining enough stock to meet the demands of the customer. Stock turnover is also known as inventory turnover it is rate or ratio that shows the number of times the company has sold and replaced stock in a particular period. To determine: The stock turn rate of a retailer.

Question

Want to see the full answer?

Answer 1

Question

Chapter 13, Problem 13.13AC

Summary Introduction

Case summary:

To make sales, goods are needed by the retailers. The biggest asset is the retailer’s inventory for the retailers. As there is no enough stock of goods, that may result in low sales and carrying large inventory increases the costs and decreases the margin. And these two situations reduce the profit.

The efficiency of the reseller’s inventory management is stock-turn rate (Inventory turnover rate for producers). The key to succeed in the retailing business is realizing a heavy quantity of sales on a small inventory as probable while maintaining enough stock to meet the demands of the customer.

Stock turnover is also known as inventory turnover it is rate or ratio that shows the number of times the company has sold and replaced stock in a particular period.

To determine: The stock turn rate of a retailer.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Is distribution a cost or a benefit? Using one example of your choice, briefly explain how a distribution strategy can create or destroy value for a firm

Is a direct selling supply chain without retail stores always less expensive than a supply chain with retail stores?

Why is inventory management a critical operation in business? Can you name at least one major retailer that shot to the forefront of the industry simply because of its innovative inventory management mechanism?