Two primary factors control inventory. The average amount of inventory you keep on hand, and the total cost of all the inventory you sold in a given time period.

Average inventory will largely be determined by your business model and your business finances.  Are you a small specialty shop that primarily deals in service? In that case, you might keep a little inventory on hand, but mainly you deal with special orders. If you have a large retail store that aims to move a higher volume of goods, you need to have sufficient capital and financing to hold that inventory.

Purchasing and Inventory includes:

• Receiving Stock
• Price Ticketing Information
• Returns to Suppliers
• Write Offs
• Mar Ups and Mark Downs
• Stocktake
• Transferring Stock Interbranch
• Dealing with Repairs
• Lending Stock to Other Retailers

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