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Average StockSum of the stock at the beginning of a period, the stock at the beginning of similar
periods, and the stock at the end of the period, divided by the total number of stock listings.
Basic StockThe assortment of merchandise that should be maintained at all times. This merchandise
consists of staples that have a highly predictable sales rate because customer demand remains relatively
consistent.
Dollar or Seasonal Merchandise Plan/Six-Month PlanA projection of the sales goals of a department, a
classification, or an entire store for each month of a six-month period. This type of plan indicates the
rate at which money should be used for purchases in order to maintain the desired balance between
stock and sales.
Open-To-BuyThe balance of the amount of merchandise that a buyer may order during a given period,
usually one month. Open-to-buy may be calculated in dollars or units of merchandise.
Planned PurchasesThe dollar amount of merchandise that should arrive in the store during a month in
order to make planned sales and maintain an appropriate stock level.
StockSales RatioThe ratio that exists between the stock on hand at the beginning of the month (or,
sometimes, the end of the month) and the retail sales projected for that same month. This is one
method used to determine the proper amount of stock to be kept in inventory.
Stock or Inventory Turnover/Stock TurnThe number of times during a given period that the average
inventory on hand is sold and replaced. This ratio is commonly calculated for one year or a six-month
season. Stock turnover is determined by dividing net sales by average inventory at retail.
Weeks SupplyA method of planning stock whereby the needed inventory is equal to the sales for a
specific number of weeks.
FORMULAS
Average Stock
Basic Stock
BOM Stock
BOM Stock
LY Actual Sales
Markdown Percent
Stock - Sales Ratio = BOM Retail Stock Sales for the Month
Stock Turnover