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Retail: Insights - Inventory Coverage
Retail: Insights - Inventory Coverage

Understanding Your Stock Coverage Ratio Report

Chris avatar
Written by Chris
Updated over a week ago

The Stock Coverage Ratio Report (Inventory Coverage) is a valuable tool for monitoring and optimizing your inventory. Use this report to make informed decisions about restocking and ensuring you have the right products in stock to meet customer demand. Take a look at the report breakdown:

Product Name - Within this column, you'll see the names of the products currently residing in your inventory, essentially forming the backbone of your stock catalog.

# On Hand - This numerical representation indicates the current quantity of each product within your inventory. It's a tangible measure of the physical stock available for use and sale.

Avg Items/Week - This metric reveals the average number of items sold or utilized over the span of one week. It serves as a vital insight into consumption trends and demand patterns for your products, allowing you to respond effectively.

Stock Coverage - The stock coverage is calculated by dividing the current quantity (# On Hand) by the average items sold per week (Avg Items/Week). When stock coverage is low, it signals that your inventory may be running out faster than anticipated. This is a clear indicator that restocking is on the horizon.

Days Remaining - This figure is a practical estimate of the number of days your current stock can sustain based on the average weekly consumption. It's a proactive measure to predict when you might need to replenish your inventory, ensuring you stay prepared to meet customer demand.

Remember, a stock coverage of 1 signifies that you have precisely enough inventory to last one week. A stock coverage of 0.5 indicates your stock will last half a week. If your stock coverage falls below 0.5, it's a significant sign that you might be facing an impending shortage.

By harnessing the power of the Stock Coverage Ratio Report, you'll be well-equipped to keep your inventory running efficiently, anticipate restocking needs, and maintain a robust and responsive inventory system. This will undoubtedly enhance your ability to keep customers satisfied and boost your overall bottom line.

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