Inventory Performance, Cost and Value Measures

Financial Metrics Calculations • The annual retail sales for an item is $3,200,000, the COGS is $1,200,000, the UIV is $5.00, and the AIL is 500,000.

• What is the retail turn rate? • What is the turn rate at cost? • What is the GMROI? • If the ICR is 30% per year, what is the IVA™?

• If the unit fill rate for the all the items in a warehouse is 97%, the average units per line is 3, and the average lines per order is 2; what is the expected line fill rate and order fill rate out of that warehouse?