Using your inventory control system ranking feature calculate the popularity of a particular item once a year.
Determine which inventory should have the stocking quantity set to0 based on the last year’s historical sales. If your vendor will take it back and exchange it for faster moving inventory, pull the inventory you want to send back and set the quantities on hand to0.
Count the inventory by vendor or product line, depending on what makes since for your business. Divide the entire inventory into logical segments and determine which month you plan on counting a particular segment.
After your count is done, look at your history of lost sales during the year. If you determine that an item’s popularity has increased during the year, consider raising the stocking quantity value so you will stock more of the most popular items.
