MKTG 403 - Managing Merchandise

Which of the following is the process by which a retailer attempts to offer the appropriate quantity of the right merchandise, in the right place, and at the right time, while meeting the company's financial goals?

• Category management

• Inventory control

• Merchandise management

• Materials procurement and handling

Which of the following schemes is the correct order describing the levels of the merchandise classification scheme from the highest level to the lowest level?

• Merchandise Group-Department-Classification-Category-SKU

• Department-Merchandise Group-Classification-Category-stock-keeping unit (SKU)

• Merchandise Group-Classification-Department-Category-SKU

• Category-Classification-Merchandise Group-Department-SKU

A performance measure which assesses a buyer's contribution to ROA is called the

• gross margin.

• gross margin return on investment.

• net profit.

• break-even point.

When there is a high inventory turnover, there is an increase in sales because

• price points are set higher to accommodate for potential sales loss.

• new merchandise is continually available to customers.

• the merchandise begins to look shopworn.

• sales are increased by reducing prices.

Merchandise like men's crew socks, canned peas, college ruled loose leaf paper, and 60-watt light bulbs would be considered ________ that are in continuous demand over an extended time period.

• expected merchandise

• seasonal merchandise

• fashion merchandise

• staple merchandise

________ consist of items that are only in demand for a relatively short period of time.

• Expected merchandise categories

• Sample merchandise categories

• Staple merchandise categories

• Fashion merchandise categories

Which of the following is NOT true of a fashion merchandise category?

• Forecasting sales for this category is simplistic and predictable.

• It consists of items that are only in demand for a relatively short period of time.

• The introduction of new products makes the existing products obsolete.

• New products are continually introduced into these categories.

What is the first step in merchandise management planning?

• Developing a forecast for sales

• Executing a merchandise plan

• Developing a business plan

• Determining the appropriate inventory levels

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

• Assortment

• Merchandise mix

• Product availability

• Variety

________ refers to inventory for which the level goes up and down in response to the replenishment process.

• Basic stock

• Cycle stock

• Backup stock

• Order point