Inventory Purchased Formula is the economic equation that gives businesses an insight into their inventory performance. The formula takes into account the amount of raw materials and goods purchased from suppliers, plus any other costs associated with purchasing inventory (such as shipping costs). By keeping track of this formula on a regular basis, businesses can ascertain how efficient their purchasing processes are, and in turn gain a better understanding of their local market. It’s a simple yet powerful calculation that can help you make smart decisions about your stock levels, thus ensuring the success of your business in the long run.