Which of the following does not describe appropriate space management?
A) Merchandise categories with high GMROI merit more space than merchandise categories with lower GMROI do.
B) Less space is allocated to fast-selling merchandise to allow more shelf space to encourage sales of slower-moving items.
C) A retailer overallocates space to categories purchased by their platinum customers, the customers with the highest lifetime value.
D) A retailer overallocates space to some low-productivity categories such as milk because an extensive assortment in these categories attracts customers to the store and positively affects the sales of categories with higher GMROIs.
E) High turnover items need to be restocked more frequently to avoid stockouts.

Question

Quizplus · Accepted Answer

Merchandise displayed on the shelf is depleted more quickly for items with high inventory turnover. Thus, more space needs to be allocated to this fast-selling merchandise to minimize the need to restock the shelf frequently and reduce stockouts.

Which of the Following Does Not Describe Appropriate Space Management