Movement Analysis - GMROI (IC152)

Run Movement Analysis - GMROI (IC152) to print a report of gross margin return on investment. This report lists items in descending order by gross margin return on investment (GMROI) percentages and suggests movement classes based on those percentages.

Processing Effect

You define what percentage of the GMROI must be met by movement class 1, 2, and 3.

For example, if you assign 70, 20, and 10 to movement class 1, 2 and 3, this program assigns class 1 to items that make up 70 percent of the total GMROI, class 2 to items that make up the next 20 percent of total GMROI, and class 3 to items that make up the last 10 percent of total GMROI. You do not have to assign a percentage to each movement class. However, the total percentage assigned must equal 100 percent. Examples include 50/50, 80/15/5, and 60/40.


GMROI Percentage =	Price - Cost	x	Turnover
	Price		1-(Cost-Price/Price)

This program requires you to enter the period and year range for which to analyze inventory movement. For example, enter

1 1993 - 4 1993

to analyze inventory movement for the first four periods in 1993. This form also provides an update option that lets you update suggested movement classes to Item Location records in IC12.1 (Item Location).

You can select the items affected by this form by location, report group, and/or sales class. You can also specify a GMROI cutoff and/or include items set up as inactive in the Item Master file (IC11.1) or Item Location file (IC12.1). If you specify a GMROI cutoff, this program excludes items that fall below the GMROI specified.