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Analogy #1

Kanchan jewelers were functioning as the 1990 and have now end up being one of the distinguished jeweler’s stores on town while having common from the customers. However, to your latest beginning out of Dependency Jewelers, the business out-of Kanchan jeweler is apparently much impacted. Here are the sales analysis as well as catalog over the past three years.

As well as rise above the crowd, the sales is declining and you can inventory is on the rise and therefore means severe battle and sluggish gains having Kanchan jewelers. Play with List Ratio to ascertain just how much could have been the team inspired.

First, we have to estimate the typical inventory. And therefore, having 2013 average collection could be off 2012 and you will 2013, and you may furthermore to own 2014 could be typically 2013 and 2014. (more…)