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Most retailers think that maximizing sales will lead to flow of non stop revenue. Think of inventory in terms of time.
Have at hand only enough inventory at a given time to support planned sales, until the next delivery. A retailer should also have a safety stock to cover spike in short term or the possibility will be late on his delivery.
A retailer can have the number of weeks of planned sales going forward that is represented in the current inventory. The advantage of thinking in terms of weeks of supply, it places focus on maximizing inventory returns investment as it linked planned sales to inventory levels
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Nov 4th, 2015
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