Planned purchases at retail are computed as follows:
A) planned sales plus planned reductions plus planned EOM stock minus planned BOM stock.
B) planned sales minus planned reductions plus planned BOM stock plus planned EOM stock.
C) planned sales plus planned reductions minus commitments for future delivery.
D) planned BOM stock plus planned sales plus planned reductions minus EOM stock.
E) planned sales plus planned reductions plus planned EOM stock plus planned BOM stock.

Question

Quizplus · Accepted Answer

Planned purchases at retail are calculated as the sum of planned sales, planned reductions, and planned end-of-month (EOM) stock minus planned beginning-of-month (BOM) stock. This formula takes into account the expected sales and markdowns during the period as well as the desired inventory levels at the beginning and end of the period.

Planned Purchases at Retail Are Computed as Follows