Posted On: 06/29/2016 11:08:01 AM
Post# of 8802
Just posted this on IHUB
Let me think out loud here. So, if inventory equals $836053, what might it mean if that inventory were entirely made up of $200 smartphones and no optional gizmos to go with those phones. Let's assume that that there are 20 stores (there are probably more than that). Let's assume four new phone buyers per day in each store (this would obviously be a slow day so an average days sales would probably more than that).
So, $836053 divided by $200 smartphones = ~4181 smartphones.
So, 4,181 smartphones divided by 20 stores = ~209 smartphones per store.
So, 209 smartphones divided by 4 sales per day for each store = 52.25 days worth of inventory for each store.
365 days divided by 52.25 days for inventory turnover = 7. Thus, Inventory replenishment must occur at least 6 times in one year.
So, $836053 times 7 = $5852371 in sales.
Remember, I took extremely conservative estimates here. If there are 40 stores, we are looking at doubling the sales estimate. If there are eight customers per day that is another doubling.
Hmmm... So, 5852371 times 4 equals $23,409,484 in sales, if business is booming.
Let me think out loud here. So, if inventory equals $836053, what might it mean if that inventory were entirely made up of $200 smartphones and no optional gizmos to go with those phones. Let's assume that that there are 20 stores (there are probably more than that). Let's assume four new phone buyers per day in each store (this would obviously be a slow day so an average days sales would probably more than that).
So, $836053 divided by $200 smartphones = ~4181 smartphones.
So, 4,181 smartphones divided by 20 stores = ~209 smartphones per store.
So, 209 smartphones divided by 4 sales per day for each store = 52.25 days worth of inventory for each store.
365 days divided by 52.25 days for inventory turnover = 7. Thus, Inventory replenishment must occur at least 6 times in one year.
So, $836053 times 7 = $5852371 in sales.
Remember, I took extremely conservative estimates here. If there are 40 stores, we are looking at doubling the sales estimate. If there are eight customers per day that is another doubling.
Hmmm... So, 5852371 times 4 equals $23,409,484 in sales, if business is booming.
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