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Average Initial Inventory at Wholesale (AIW)

The average initial inventory at wholesale price (AIW) measures the beginning inventory (BOP) valuation at wholesale full price. The AIW is usually measured at the start of a fiscal period or at the start of a fashion season. This price is used to determine if the assortment for the period/season is sufficient to meet the financial objectives in the buy sheets, sales plan, or the merchandise plan.

Average Initial Inventory at Retail (AIR)

The average initial inventory at retail price (AIR) measures the beginning inventory (BOP) valuation at full price. The AIR is usually measured at the start of a fiscal period or at the start of a fashion season. This price is used to determine if the assortment for the period/season is sufficient to meet the financial objectives in the buy sheets or the merchandise plan.

Inventory Balance Set: Units of Measure

Introduction Units of measure, or UOM, is important to consider because we need to decide what inventory valuation we're talking about. For instance, if I say sales, am I referring to the units, the cost which I paid, or the retail the customer paid? I will be...