Product inventory is one of the biggest assets at your business. Profits are lost when you have too much or too little of a particular product. If you have too little of a product it will result in the loss of an opportunity to sell that product. If you have too much of a product, it will result in the waste of capital. However, you can maximize profits by properly maintaining accurate model quantities of your inventory.
The Model Quantity Wizard suggests the optimum stocking level for your products so that you can maximize profits and minimize the investment in your inventory. When you run the Model Quantity Wizard for a range of products, the current model quantity and the calculated model quantity display for each product. The calculated model quantity is the optimum stocking level for a product, calculated by analyzing sales during the last six months using a weight system, where sales last month have more weight than sales six months ago.
You can select to use the calculated model quantity or define your own optimal model quantity for each product as necessary. Once you have calculated the model quantity, you can determine the correct amount of inventory to order on your next purchase order.
The Model Quantity Wizard displays.
Select Retail to analyze retail items or select Supply to analyze professional supplies.
Select Include Discontinued to include deactivated products in the analysis.
In the Distributor field, select a distributor to analyze products supplied by that distributor.
In the Manufacturer field, select a manufacturer to analyze products made by that manufacturer.
In the Class field, select a product class to analyze the products in that product class.
Turn over products _ times a year = Select this option and select the number of times per year that you want to order the products.
Purchase products every _ weeks = Select this option and select the interval that you want to order the products.
A list of products matching the specified criteria displays.
Tip: If you select a product, the 6 months of sales history display at the bottom of the window.
Update every product in the list to the suggested values = Click Select All.
Update selected products to the suggested values = Select Update next to the products you want to update.