Inventory Shortages

Mary Elliott

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0058
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Abstract

This case study introduces students to the retail method for calculating book inventories, inventory shortages, and the effects on gross margin. A merchandising operations manager for a large retail chain has suspicions of excessive inventory shortages in one of the chains’ clusters of stores. Using the calculations outlined within this case, the operations manager determines if her suspicions are correct. Using a problem-based scenario, students will use retail math formulas to calculate book inventory, inventory shortages and overages in dollars and in percentages.


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