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Inventory Cost Rate (Smart Phone)
Inventory Cost Rate (Smart Phone)
Inventory cost /week/unit = Annual capital cost/52 + (product value - liquidation value) / Product life-cycle
$20.00
Inventory cost /week/unit = Annual capital cost/52 + (product value - liquidation value) / Product life-cycle
$8.00
Overnight/standard 2D = 2.5
Volume discount = 50%
Standard freight rate = $2.40
First pick $1
followup picks $0.10
Data for an average store
e) / Product life-cycle
The Average Store
300.00
250.00
200.00
150.00
50.00
% savings by Pull
% Savings 88%
Pull vs. push
80%
Cold-Smart 88.40%
60%
Cold-Feature 65.50%
40%
Hot-Smart 53.86%
20%
Hot-Feature -12.02%
0%
-20%
Cold-Smart Co
$165,770
80%
65%
60% 54%
40%
20%
0%
-12%
-20%
Cold-Smart Cold-Feature Hot-Smart Hot-Feature
Inventory Picking/Pac
cost Shipping cost king cost
Push $147,970 $17,029 $771
$180,000
$160,000
$140,000
$120,000
$100,000 Picking/Packing
cost
$80,000
Shipping cost
$60,000
Inventory cost
$40,000
$20,000
$0
Push Pull