Question 1

Father Christmas is a retail store in Georgia that sells a unique Santa made from fur,wool,and tapestry.If 150 customers wish to buy a Santa from this store,and it sells 120 before running out of stock,what is its service level?

Accepted Answer

Product availability is defined as the percentage of the demand for a particular SKU that is satisfied.For instance,if 100 people go into a PetSmart store to purchase a small,Great Choice,portable kennel but only 90 people can make the purchase before the kennel stock is depleted,the product availability for that SKU is 90 percent.

Question 2

Which of the following factors does NOT contribute to the increase of buffer stock levels?

Accepted Answer

Frequent store deliveries require less buffer stocks.

Question 3

Which of the following merchandise systems focuses on staying as close to out of stock as possible?

Accepted Answer

An important objective of merchandise planning systems for fashion merchandise categories is to be as close to out of stock as possible at the same time that the SKUs move out of fashion.

Question 4

Which of the following is true of the forecasting approach for staple merchandise categories?

Accepted Answer

The sales of staple merchandise are relatively constant from year to year.Thus,forecasts are typically based on extrapolating historical sales.

Question 5

Which of the following is NOT true of fashion merchandise categories?

Accepted Answer

Buyers for fashion merchandise categories have less flexibility in correcting forecasting errors.

Question 6

Which of the following statements does NOT describe the trade-offs that buyers should consider for merchandise assortment planning?

Accepted Answer

Many retailers have initiated SKU rationalization programs in their efforts to analyze the benefits they might gain from deleting,adding,or keeping certain items in their assortments.The objective of such a program is to increase inventory turnover by reducing the number of SKUs without reducing sales.

Question 7

A(n)_____ is a small group of respondents interviewed by a moderator using a loosely structured format in which participants are encouraged to express their views and comment on the views of others in the group.

Accepted Answer

A focus group is a small group of respondents interviewed by a moderator using a loosely structured format.Participants are encouraged to express their views and comment on the views of others in the group.

Question 8

Which of the following statements about assortment is NOT true?

Accepted Answer

Large assortments are particularly appealing to customers who seek variety-those who want to try new things.However,offering a large assortment can make the purchase decision more complex and time-consuming and potentially overwhelms the consumer,which could reduce sales.

Question 9

Garden rakes,lawn mowers,and sunscreen would be considered part of a(n)_____ category.

Accepted Answer

Seasonal merchandise categories consist of items whose sales fluctuate dramatically depending on the time of the year.

Question 10

Which of the following best describes variety?

Accepted Answer

In the context of merchandise planning,variety,or breadth,of a merchandise category is the number of different merchandising subcategories offered.

Question 11

_____ of a merchandise category is the number of different merchandising subcategories offered.

Accepted Answer

Variety is the breadth of a retailer's merchandise and the number of different merchandising subcategories offered.

Question 12

Which of the following merchandise categories is purchased in a manner similar to fashion merchandise?

Accepted Answer

Plans for seasonal merchandise,like fashion merchandise,hope to zero out inventory at the end of the season.

Question 13

_____ of a retailer's merchandise is the number of SKUs within a subcategory.

Accepted Answer

Assortment refers to the depth of merchandise or the number of SKUs within a subcategory.

Question 14

Which of the following processes is an unstructured form of personal questioning used in market research and involves extensive probing to get individual respondents to talk in detail about a subject?

Accepted Answer

The in-depth interview is an unstructured personal interview in which the interviewer uses extensive probing to get individual respondents to talk in detail about a subject.

Question 15

The _____ is the number of each SKU in the assortment plan that the buyer wants to have available for purchase in each store.

Accepted Answer

The model stock plan is the number of each SKU in the assortment plan that the buyer wants to have available for purchase in each store.

Question 16

_____ is also referred to as the level of support or service level.

Accepted Answer

Product availability is also referred to as the level of support or service level.

Question 17

What is the first step in merchandise management planning?

Accepted Answer

The first step in merchandise management planning is to develop a forecast for category sales.The approach for forecasting sales of staple merchandise is to project past sales trends into the future,while making adjustments for any anticipated factors,such as promotions and weather,that may affect future sales.

Question 18

Which of the following statements does NOT describe the relationship between product availability and stock level?

Accepted Answer

If the backup stock is too low,the retailer will lose sales and possibly customers as well when they find that the products they want are not available from the retailer.

Question 19

Which of the following terms is defined as the percentage of demand for a particular SKU that is satisfied?

Accepted Answer

Product availability is defined as the percentage of the demand for a particular SKU that is satisfied.It is also referred to as the level of support or service level.

Question 20

Father Christmas is a retail store in Georgia that sells a unique Santa made from fur,wool,and tapestry.The store does not sell any other product.Therefore,the store has no _____.

Accepted Answer