Question: 1. Calculate the GMROI and inventory turnover given annual sales of $20,000, average inventory (at cost) of $4,000, and a gross margin of 45 percent.
2. As the athletic shoe buyer for Sports Authority, how would you go about forecasting sales for a new Nike running shoe?
3. Using the 80-20 principle, how can a retailer make certain that it has enough inventory of fast-selling merchandise and a minimal amount of slow-selling merchandise?