The ideal turnover rate varies by industry, but generally, a higher rate indicates efficient inventory management. Calculate it by dividing the cost of goods sold by the average inventory value.
Should I use a first-in, first-out (FIFO) or last-in, first-out (LIFO) inventory system?
It depends on your business needs and accounting preferences. FIFO is more straightforward and aligns with GAAP, while LIFO can provide tax benefits.
How can I prevent overstocking seasonal items?
Plan and adjust your cyprus telegram screening inventory levels based on historical sales data. Consider offering discounts or bundling seasonal products if stock levels are too high.
What’s the role of safety stock in inventory management?
Safety stock acts as a cushion against unexpected demand spikes or supply delays. It ensures you can fulfill orders even when things are unplanned.
How do I manage slow-moving inventory effectively?
Offer promotions, bundle slow-moving items with popular ones, or consider donating or liquidating them to free up space and capital.
What’s the difference between lead time and reorder point?
Lead time is the time it takes for an order to be delivered, while the reorder point is the inventory level at which you should reorder to avoid stockouts.
Can I outsource my inventory management?
You can consider outsourcing to third-party logistics providers or using fulfillment centers to manage your inventory and shipping.