You have a finite amount of floor space and money to invest in inventory. 

The Stock Velocity Index (SVI = Gross Margin X Stock Turns) is the only truly accurate measurement of the return on investment in your inventory that you are achieving. 

In other words, it is the gross margin of a product annualised. If for instance a product that has a gross margin of 30%, and a stock turn of 1, its SVI is 30. The same product with a stock turn of 2, has an SVI of 60, or generating the same amount of gross profit on half the inventory. 

Therefore it goes without saying that the higher the SVI the higher the return on investment in Inventory you will achieve. Stores that use OPTEMIZER and its Open2Buy Plus module achieve a minimum target SVI of 150.

What SVI is your business currently achieving?