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| (T/F) Merchandise budgets, as part of a firm’s business plan and goals, determine the level s of dollar investment in goods for each selling period in the merchandising cycle. |
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| Percent initial markup formula |
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Definition
| (reductions + expense + profit) / merchandise to receive |
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Definition
| The retail method of accounting for inventory assumes that the value of inventory is determined by: |
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Definition
| When using the space productivity method to plan fashion merchandise sales in physical stores, it is usually based on ________ |
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Definition
| ___assumes no previous levels of sales. |
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Term
| Inventory reductions can take the forms of |
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Definition
Markdowns for the purposes of sales promotion or inventory clearance
B. Markdowns as employee discounts
C. Inventory shortages due to, e.g., shoplifting, damaged merchandise |
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Term
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Definition
| (T/F) Zero-to-zero inventories are often used to plan seasonal and fashion goods. |
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Term
| goals of a firm’s inventory planning and control |
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Definition
Fulfilling sales goals
B. Avoiding stockouts and preventing overstocks
C. Minimizing inventory investment |
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Term
| Merchandise to receive formula |
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Definition
| Planned sales plus planned reductions |
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Term
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Definition
| (T/F) A customer-response system means that merchandise assortments are cost-driven. |
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Term
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Definition
| (T/F) The smaller the VSA, the more focused the assortment will be. |
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Term
| not included in the in-store shopping behavior model |
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Definition
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Definition
| _____ means that the particular SKU is not immediately available to the customer who wants to buy it. |
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Term
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Definition
| (T/F) The situational factor of social surroundings refers to how other people influence an individual’s purchase behavior. |
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Definition
| (T/F) A model stock is a plan for a merchandise assortment according to assortment factors. |
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Definition
| _________ have many units allocated per SKU, and usually not less than 10. |
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Definition
| (T/F) A completely balanced assortment is easily achievable |
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