chapter 12: managing the merchandise planning process – Flashcards

Unlock all answers in this set

Unlock answers
question
process by which a retailer offers the correct quantity of the right merchandise in the right place at the right time and meets the company's financial goals.
answer
merchandise management
question
sense market trends, analyze sales data and make appropriate adjustments in prices and inventory levels
answer
merchandise managment
question
manage portfolio of stocks whereas retail buyers manage a portfolio of merchandise inventory.
answer
stock brokers
question
the buying organization
answer
merchandise group --> department --> classification --> category --> sky
question
managed by a general merchandise manager, senior VP, or GMM highest classification ex: mens & children apparal
answer
merchandise group
question
second level, managed by DMM, ex: children
answer
department
question
a group of items targeting the same customer type, ex: boys size 4-6
answer
classification
question
ex: outwear for boys size 4-6
answer
category
question
the smallest unit available for inventory control breaks it down by brand, size color, style ex: boys underarmour jacket, black, size 4
answer
SKU
question
process of managing a retail business with the objective of maximizing the sales and profits of a category
answer
category management
question
obejective of category managment
answer
maximize the sales and profits of the entire category, not just a particular brand
question
selected vendor responsible for managing a category. works with the retailer to develop a better understanding of consumer shopping behaviors, create assortments that satisfy consumer needs and improve the profitability of the merchandise category
answer
category captain
question
true or false: category captains frequently have more information and analytical skills about the category in which they compete than retailers
answer
true
question
problems of category captain
answer
have different goals than retailer, take advantage of its position,
question
category captain examples
answer
general mills, kellogs,
question
merchandise managers have control over
answer
merchandise they buy, price it is sold, cost of merchandise
question
merchandise managers do not have control over
answer
supply chain management, information systems, real estate, HR, operating expenses
question
advantages of rapid turnover
answer
increased sale volume, less risk of markdowns,
question
approaches to improve inventory turnover
answer
reduce number of categories, number of SKUs in category and number of items for eacch SKU
question
true or false: another approach to inventory turnover is to buy merchandise more often but in smaller quantities
answer
true
question
BUT by buying in smaller quantities
answer
gross margin decreases, operating expenses decrease and buyers spend more time monitoring and placing orders
question
what are the two types of merchandise management planning processes
answer
staple (basic) and fashion
question
continuous deamnd over an extended time period, limited number of new product introductions, east to forecast demand, and continuous replenishment
answer
staple (basic)
question
in demand for a short period of time, continuous introductions of new products, more difficult to forecast demand
answer
fashion merchandise
question
steps in merchandise management process
answer
1. forecasting sales, 2. developing an assortment plan 3. determining the appropriate inventory
question
understanding the nature of the product life cycle, collect data on product and similar products
answer
developing a sales forecast
question
introduction, growth, maturity, decline
answer
product life cycle
question
true or false: knowing where a category is in its life cycle is important in developing a sales forecast and merchandising strategy
answer
true
question
retailers develop fashion forecasts by relying on:
answer
previous sales data, personal awareness, fashion and trend services, vendors, traditional market research
question
SCAN
answer
shop stores, websites, catalogs as the customer would converse with consumers, clerks, act like not a customer notice
question
list of the SKUs that a retailer will offer in a merchandise category and reflects the variety and assortment that the retailer plan to offer in a merchandise category
answer
assortment plan
question
number of different merchandising categories within a store or department
answer
variety (breadth)
question
number of SKUs within a category
answer
assortment
question
10 styles x 3 colors x 9 sizes x 3 lenthgths = 810 skus
answer
assortment plan
question
number of each sky in the assortment plan the buyer wants to have available for purchase in each store
answer
model stock plan
question
true or false: choosing an appropriate amount of backup stock is critical to successful assortment planning
answer
true
question
if the backup stock is too low -->
answer
lose sales and customers
question
if the backup stock is too high -->
answer
wasted money on needless inventory tithe could be invested in more variety
question
the point at which innovatory available should not go below or else will run out of stock before the next order arrives
answer
order point
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New