![]() You can also enhance customer service and retention by providing free shipping, flexible returns, or loyalty programs to increase customer satisfaction and loyalty and encourage repeat purchases. Lastly, you can improve your marketing and sales efforts by offering discounts, promotions, or incentives to stimulate customer demand and clear out old or seasonal inventory. But Sortly’s inventory management software can provide you with reports and data on demand, making your calculations a breeze. Furthermore, you can adopt inventory management software or systems such as barcode scanners, RFID tags, or cloud-based platforms to automate and streamline your inventory tracking, ordering, and reporting processes. If you stock more than a handful of products, it can be time-consuming to calculate the inventory turnover ratio for each of them. The formula for DSI is: Average Inventory Value / Cost of Goods Sold x 365 days. It’s useful for calculating how long it will take you to clear the inventory you’re currently carrying. ![]() Add your perspective Help others by sharing more (125 characters. Daily Sales Inventory, or DSI, is the average number of time, in days, that it takes to sell all the inventory you have in stock. Additionally, you can implement inventory optimization techniques such as ABC analysis, EOQ model, safety stock, reorder point, or demand forecasting to determine the optimal levels and reorder quantities for each product. Generally, a higher inventory turnover ratio is preferable, but not too high that you risk running out of stock and losing sales. Alternatively, if we didn’t want to do the math ourselves, we could simply run the Turns report in Lightspeed Analytics and find the shoes top level category. We turned over our shoe inventory 3.8 times last year. To do this, consider conducting regular inventory audits and analysis to identify and remove excess, obsolete, or slow-moving inventory. The coefficient of variance percentage for goods issues is calculated to show the standard deviation of daily goods issue quantities in relation to the average. With those numbers on hand, we look at our inventory turnover ratio formula. In order to improve your inventory turnover ratio, you need to increase sales and/or reduce inventory. ![]()
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