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The use of modeling is more likely to be effective when the:
Inventory Turnover
A proportion demonstrating the rate at which a company's goods are sold and then replenished over an interval.
Cost of Goods Sold
Direct costs tied to the process of producing goods a company puts up for sale, inclusive of labor and materials.
Average Inventory
A means of measuring the approximate amount of inventory a company holds over a certain period, aiming to balance holding costs against stockout risks.
Gross Profit
The difference between sales revenue and the cost of goods sold before deducting overheads, interest, tax, and other expenses.
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