You have to consider how much stock is needed in your company.
The ideal situation is that you always have the item your customer wants to buy in stock. 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 simply 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 its 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.
If you think education is expensive, try ignorance.
– Derek Bok, former president of Harvard University