Hacking inventory is a little like baseball's OPS... stay with me and I'll explain.
Any avid baseball fan will tell you how important the trendy new hitting statistic OPS (a combination of slugging and on-base percentages) is to gauging a player’s offensive success.
In the restaurant industry, there's a similar combined statistic that gives you an immediate sense of the success of a restaurant... Prime Cost. The components of this powerful metric are Cost of Goods Sold (COGS) and Total Labor cost.
In the case of OPS, the higher the number the better the player. But in the case of Prime Cost, it's the opposite. This stat is more defensive in nature... so you want to drive it down.
While labor is an equal contributor to Prime Cost, it’s harder to control based on business circumstances compared to COGS. That’s why this article is focusing on the best defensive weapon you have to keep COGS under control and lower Prime Cost… taking inventory.