Stock Turn Estimator
Stock Turn Estimator (Calculator) Explained:
(a) What is this? This calculator provides a crude estimate of how many stock turns you need given a particular GP%.
(b) What does this tell me? This calculator tells you the number of stock turns that are required for a given GP%. It details a stock turn number, and the number of weeks stock. The stock turn is how many times in a year you should turn the stock. The weeks of stock number is simply, on average, how many weeks of stock you have on hand.
(c) Why should I use it? This will give you a crude guide to stock management. In particular, what sort of target stock turn you should be targeting in a given product or category. It is especially useful when given a deal by suppliers/vendors. You can convert the deal to GP%, and then see if the quantity of stock required to get the deal is onerous or not.
(d) Caution: This calculator is an estimate only. It does not mean that it is accurate, and it certainly won't hold true for all categories, products or deals. They necessarily vary widely. Note that this calculator provides targets only. If a category or product is under performing, it doesn't mean it should be deleted. In no way should this calculator be used as the sole determinate for products, deals and categories. Any decisions made are at your own risk.