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Glossary

Inventory & availability

What is carrying cost?

The cost of holding stock: capital, storage, insurance, shrinkage and obsolescence.

Why it matters: It's the real price of "just in case" buying, and it's bigger than most brands assume.

Related terms

weeks of cover (WOC)

How many weeks your current stock will last at the current rate of sale.

GMROI

Gross margin earned per dollar of inventory.

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