InventorySlide 2Slide 3SalesIn StockLost SalesService LevelRevenuesCostsMarginsSlide 11Slide 12Slide 13Slide 14Inventory–Initial inventory•Units on shelf at beginning of season (1,919)Inventory–Replenishment/total inventory•Within the season (weeks 3-17 out of 20), an additional 3,573 units are received, based on reorders, totaling 5,492Inventory–Average Inventory•Shelf stock was 1230 units on average, during the season–Inventory Turns•Total offering/ average inventory•5492/1230 = 4.47Sales–96.5% of the units offered were sold during season–3.5% of goods will be liquidated at season’s end–84.9% of units sold at initial retail price (sell through)In Stock–On the average, over the entire season, 97.3% of the SKU’s were in stock–Before 1st markdown, in stock percentage was 99.8%Lost Sales–Over the entire season, 2.1% of customers left empty-handed–Nearly all customers found an item to purchase up until the 1st markdown (.0% lost sales)Service Level–97% of customers found their first choice SKU in stock for the whole season–This is not a customer service variableRevenues–$131,042 sales generated from customer sales–$1554 generated from liquidation (jobbing off)–Total revenue is $132,596–Revenue/unit is $132,596/5,492 or $24.14Costs–Wholesale cost of goods was $68,648–Additional procurement costs were incurred•Ordering, handling, shipping, carrying, overheadMargins–Gross margin•Total revenue (NS) – COGS–132,596 – 68,648 = 63,949–GM/Sq. Foot•Ratio of GM to sales floor space–63,049/1500 sq. ft. = $42.03Margins–% Gross margin•GM/NS (total revenue)–63949/132,596 = 48.2%–% of GM potential•Potential is GM$ obtained if all units sold at initial retailMargins–Adjusted GM•GM – procurement costs–63,949 – 14,041 = 49,908Margins–GMROI•GM/Average Inventory $ at cost•Average Inventory at cost = average inventory * unit cost–1,230 * $12.50 = $15,375•$63,949/$15,375 = 4.16 GMROIMargins–GMROISL•Since we were only in stock 97.3% of the time, GMROI is adjusted•4.16 * .973 =