Inventory variance

Ideally, when you do a stock count, the number of stock items should be the same as the number registered in your inventory system. If these numbers don’t match, we call it inventory variance.  Inventory variance is the difference between the theoretical inventory (the inventory of stock in the books) and the actual inventory (the […]

Inventory Turnover Ratio (ITR)

The Inventory Turnover Ratio helps businesses gauge the overall health of their inventory. This metric measures how rapidly a company’s inventory sells: how many times you’ve sold, used and replaced your entire stock within a given timeframe. A high ITR points to strong sales.

Internal transfers

Internal transfers are part of inventory actions – all the actions that either add to or deplete stock. An internal transfer refers to inventory that is moved between the locations of a multi-unit restaurant or hotel group. There are transfers in (when inventory is brought in from a different location) and transfers out (when you […]