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Formula
STR = (Number of Units Sold / Number of Units Received) * 100
Know your metric
Importance of
Sell Through Rate
Inventory Management
Indicates how effectively inventory is being turned over.
Product Demand Insight
Provides insights into product demand and consumer preferences.
Pricing Strategy Tool
Can inform adjustments in pricing based on sell-through rates.
Drawbacks of
Sell Through Rate
Limited by Inventory Size
High rates may be due to low initial stock.
Not Reflective of Sales Trends
Doesn't account for broader sales trends or market conditions.
Can Encourage Overproduction
High rates might lead to overestimating future demand.
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