PAM-02
Inventory Turn & Obsolescence Review
Turn and GMROI against target, and every SKU that's crossed into obsolescence with a dated action.
Turn
| 1 | Cost of goods sold, trailing 12 months | |
| ÷ | Average inventory value | |
| = | Turn 3-4x per year parts inventory turn — PROPOSED, pending specialist review |
GMROI
| 1 | Gross margin dollars, trailing 12 months | |
| ÷ | Average inventory value | |
| = | GMROI 2.5-3.5 gross margin return on inventory investment — PROPOSED, pending specialist review |
Obsolescence list — no movement 12+ months
| SKU | Description | Value | Months no movement | Action (discount / bundle / vendor return / write-off) | Date |
|---|---|---|---|---|---|
Targets this review is measured against
- 3-4x per year
- parts inventory turn — PROPOSED, pending specialist review
- 2.5-3.5
- gross margin return on inventory investment — PROPOSED, pending specialist review
- under 5%
- of inventory value, no movement 12+ months — PROPOSED, pending specialist review
A full shelf isn't a healthy department. A shelf that keeps emptying and refilling is.