INVENTORY MARKDOWN EXPOSURE ANALYZER — CALCULATION RECORD
INPUTS
Initial gross margin: 40.0%
Holding cost per aging window: 1.0%
0–30 days: $3,200,000 cost | 5.0% current markdown | 70.0% current sell-through | 15.0% next markdown | 75.0% next sell-through
31–60 days: $2,400,000 cost | 15.0% current markdown | 60.0% current sell-through | 30.0% next markdown | 70.0% next sell-through
61–90 days: $1,800,000 cost | 30.0% current markdown | 50.0% current sell-through | 50.0% next markdown | 65.0% next sell-through
90+ days: $1,400,000 cost | 50.0% current markdown | 40.0% current sell-through | 65.0% next markdown | 60.0% next sell-through
COMPUTED POSITION
Inventory at cost: $8,800,000
Original full-price retail value: $14,666,667
Cash recovered in current window: $7,103,333
Cash recovered after aging: $2,585,500
Total cash recovered within horizon: $9,688,833
Residual inventory cost after two windows: $1,179,000
Holding cost on inventory carried forward: $36,600
Deeper-markdown penalty on second-window sales: $609,000
Total aging penalty: $645,600
Expected economic contribution after holding cost: $2,031,233
Expected below-cost loss on units sold within horizon: $400,833
FINDING
$3,666,000 of inventory cost carries beyond the current selling window. The entered second-stage markdowns and holding cost create a $645,600 aging penalty on units that sell after aging, while $1,179,000 of inventory cost remains unresolved after the second window.
METHOD STATUS
Management-entered planning assumptions. Each aging bucket is followed through a current selling window and one subsequent selling window. Unsold cost carries forward, incurs the entered holding cost, and is repriced using the entered next-stage markdown and sell-through. No external benchmark is used. This is a planning representation, not inventory accounting or valuation.
