Calculation for Weeks of Stock


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I received a newsletter from retailwise and decided to share with readers.
Inventory (at retail) divided by average weekly sales for a given period of time.
(Exclude unusually high sales weeks due to special events or seasonal surges.)

So, if you have $8,000.00 worth of inventory in one product, and your total sales of that product for the past 6 weeks is $12,000.00 the calculation would look like this:
$12,000.00 divided by 6 = average weekly sales of $2,000.00
$8,000.00 divided by $2,000.00 = 4

This means that if you did not replenish your inventory and sales continued at the same pace, you would deplete your inventory of that product to zero within 4 weeks.


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