LIFO income in the Q3 is expected to be in the range of $26M-$30M on accelerating movement of
average inventory costs to replacement costs.
RELATED ARTICLE: Martignetti reduces daily
average inventory, maintains in-stock performance, helps buyers make better decisions.
The EIA weekly oil inventory report also showed a decline of 5.3 million barrels to reach 396.2 million barrels, the lowest level since February-15 and 3% below the 5-yr
average inventory level.
This is almost equivalent to ten years
average inventory of 274k tons and substantially lower than
average inventory stock 1.1mn tons in last 29 months.
Last year, the annual
average inventory of homes on the market dropped to 1.9 months, from 2.2 months in 2016.
Increasing safety stocks results in higher
average inventory levels and higher holding costs, but at the same time it decreases risk of stock- out and penalty costs.
In terms of aging of inventory, Alveo has an
average inventory life of 11 months, much shorter than the ideal life of 1.5 years.
It is estimated that the
average inventory per manufacturer is about one and a half months, with most of them passing on only a 2 per cent price cut to customers.A few manufacturers like Suzuki Motorcycle however have started selling motorcycles and scooters at reduced prices, passing on the entire 4 percent benefits to customers.