Category: Inventory & Shipping

Reconcile cost of goods sold from inventory balances, identify valuation mistakes and understand how a stock-count error affects gross profit.

Calculate inventory turnover and days on hand, understand the 365-day assumption and avoid misleading averages in seasonal businesses.

Distinguish reorder point from safety stock and order quantity, with demand, lead-time and inventory-position examples.

Calculate EOQ, compare nearby pack sizes and understand the assumptions behind annual ordering and holding-cost estimates.

Estimate a free-shipping threshold from margin and fulfillment costs, then test mixed baskets, fees and customer behavior.