Come now, it is vital that you have the correct stock on hand. Not enough stock now could hurt, and this is a quick way of seeing if you have enough.
The report I recommend you look at is GMROI (see the selection highlighted) in your point of sale software in the reports here.
Select the list of options you want, initially; I suggest you run the next few weeks last year, some of you may need to run the next two months because of supplier issues. I recommend doing this by department.
Then you will get a report like this.
As you can see the items are all listed.
What we are looking for is items with low stock on hand figures, decent sales, and reasonable ROI% figures, ROI% is the return on investment, it is one of the best ways to determine how valuable your stock items are to your business. It is calculated by the (unit sold) x (Profit)/ (Average stock cost) and you need about 3.2 in industry, but as you can see here, there are many items above and below it.
