The difference between the ending and beginning inventory balance is added to the cost of goods sold to calculate the amount of merchandise purchased in a month.

How to Calculate Inventory to Open a Retail Store. When you are calculating your initial start-up costs for your business, inventory needs must be decided. The amount of products required by ...

Retailers manage inventory turnover ratio by buying more or less inventory, using price discounts on slow-moving merchandise, initiating marketing promotions and other means.