Post on 12-Jan-2016
Goals Prepare a purchasing plan for inventory. Describe the perpetual and periodic inventory
methods. Determine how much inventory to keep in
stock.
Slide 1
Inventory Management
perpetual inventory method stock card point-of-sale software system periodic inventory method stock turnover rate
Slide 2
Terms
Slide 3
The Marketing Concept and the Product
The wants and needs of customers are the most important consideration when developing any product or marketing effort.
The U.S. market is consumer-driven.
Slide 4
Product Mix product mix
the different products and services a business sells
Entrepreneurs may carry some products that are not profitable because the products provide a convenience for customers.
Slide 5
Often a small percentage of the product selection makes up the majority of sales revenue.
The Small Percentage
inventory
the stock of goods a business has for sale
Inventory costs include: storage insurance taxes purchase price of inventory
Inventory must be well managed if you want to make a profit. Slide 6
Meet Inventory Needs
The sales forecast can be used to
calculate required inventory. Ending inventory =
Beginning inventory + Purchases ─ Sales
Slide 7
Purchasing Plan
Chapter 10
Slide 8
Chapter 10
Slide 9
What are some of the concerns managers have regarding inventory?
perpetual inventory method
monitors inventory levels daily efficient avoids inventory shortages
stock card a paper inventory record for a single
item electronic versions available
Slide 10
Track Your Inventory
the minimum amount you want to keep
in inventory indicates when you should place an
order to receive more inventory
Slide 11
reorder point
Slide 12
point-of-sale software system
updates inventory as each sale happens provides up-to-date inventory levels
Slide 13
Use a Computer
taking a physical count of merchandise at regular
intervals Take a Physical Inventory
counting and recording actual units should be done once or twice a year can highlight discrepancies caused by a failure
to record sales theft damage
Slide 14
Periodic Inventory Method
Slide 15
How does the perpetual inventory method differ from the periodic inventory method?
Costs of Carrying Inventory
Costs can increase for many reasons including: obsolescence deterioration interest fees insurance storage
Slide 16
Manage Your Inventory
Stock shortages can lead to:
loss of sales loss of customer loyalty
Inventory Turnover Rate the rate at which inventory is sold and replaced
with new inventory
Why is this important for you to know?Slide 17
Costs of Being Out of Stock
Complete the Inventory Management
Worksheet Complete the calculations:
- Yearly sales (quantity sold retail price) - ending inventory value (ending inventory retail price)
Answer the questions Email Mr. Farrar when you both parts are
finished.
You Task