L2

Question 1

Fashion merchandise

Answer 1

PMIFFV

previous sales data
Market research
In depth interview
Focus group
Fashion trends services
Vendors

Question 2

Assortment plan

Answer 2

An assortment plan is the set of SKUs that a retailer will offer in a merchandise category. The assortment plan reflects the breadth and depth of merchandise that the retailers plan to offer in a merchandise category

Question 3

Assortment plan factors

Answer 3

1. Retail strategy
2. GMROI
   3.Complementary merchandise
3. Effects of assortment size in buying behaviour
4. Physical characteristics of the store

Question 4

Control system for managing inventory (merchandise budget plan )

Answer 4

1. Amount of merchandise In dollars that need to be delivered each month
   2 this is based on the sales forecast
   S. Includes planned employee and customer discounts
2. Level of inventory needed to support sales and achieve desired GMROI objectives

Question 5

formula for planned purchases/ monthly additions to stock

Answer 5

Planned sales + planned reduction + EOM-BOM

Question 6

Define OTB

Answer 6

OTB is to hep buyers keep track of the merchandise that they purchase and when it is to be delivered so that they do not buy more or less than the money they have in their budget each month. Therefore we can use it to monitor merchandise flow and determine how much was spent and how much there is left to spend

Question 7

OTB calculation

Answer 7

Monthly purchases/monthly addition to stocks - merch already received - merch on order - customer returns - transfer in + transfer out + return to vendors

Question 8

Inventory control systems

Answer 8

1. GMROI
2. Inventory turnover

Question 9

Ways to Improving inventory turnover

Answer 9

l. reduce the number of merch categories, the number of SKUs in a category or the number of item within an SKU
2. Buy merch more often and in smaller quantities which would reduce the average inventory without reducing sales