The ideal situation is that you always have the item in stock your customer wants to buy. On the other hand it is also very expensive to have too much in stock.
Maybe the fashion changes and customers like the colour red but you only have green in your stock. That is bad luck and your red items in stock are worth nothing.
A general rule is that 20 % of a business’s products generate 80 % of it’s income. Try to locate the 80 % of the products and eliminate them from the product line. This might minimise the need for a large stock.
Maybe you could make a deal with your supplier that they only deliver products when you actually have sold them? This is called just-in-time management.
Waiting for perfect is never as smart as making progress.
– Seth Godin, Author