Inventory Yield Calculation

The concept of Yield on the Inventory Reports used in our products has had different calculations depending on what had been requested.

In an effort to provide consistent information, and after consulting with several MUOs on Advisory boards to provide more “useful” information, the YIELD is now defined as Unit-Usage per Thousand, UPT.

The Calculation is    ($ Usage of Product that week /  $ Unit Case Price)  /   ($net Sales/$1,000)

Below is an example:

Weekly Usage of Pepperoni = $275

Case Price =  $50

Net Sales = $20,000

So  that gives   Yield = ($275/$50) / ($20,000/$1,000)  =  (5.5 cases used) / (20) = 0.275

Which means that 0.275 cases of Pepperoni were used Per $1,000 sales that week or range.

Leave a Comment

Your email address will not be published. Required fields are marked *