Abstract
This article is about an inexpensive and easily adaptable inventory maintenance system developed specifically for small business using the commonly available Microsoft Office Excel program. This paper discusses a new system for inventory management that was developed in conjunction with a small business to determine the value, volume, and contribution margins of the product mix. Other entrepreneurs have subsequently used this system for decision-making concerning the allocation of scarce resources, inventory items stocked, determination of the profitability of individual businesses, and the future potential of the business. Inventory in small business is a concern for a number of reasons including: existing management systems are expensive; turnover is a major factor in profitability; and profitability is directly attributable to stocking a saleable product mix. Entrepreneurs must optimize their resources to engender profitability and stability by selling sufficient quantities of desirable products at acceptable prices.
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