Question 1

Which of the following statements about assortment is not True?

Accepted Answer

A)  The number of SKUs offered in a merchandise category is a strategic decision. 
B)  The breadth and depth of the assortment in a merchandise category can affect the retailer's brand image. 
C)  Offering a large assortment normally simplifies a customer's buying decision. 
D)  Customer perceptions on assortments are based on the availability of the customer's favorite SKU and the size of the category's display. 
E)  Buyers need to consider the degree to which categories in a department complement each other. 
A)  The number of SKUs offered in a merchandise category is a strategic decision. 
B)  The breadth and depth of the assortment in a merchandise category can affect the retailer's brand image. 
C)  Offering a large assortment normally simplifies a customer's buying decision. 
D)  Customer perceptions on assortments are based on the availability of the customer's favorite SKU and the size of the category's display. 
E)  Buyers need to consider the degree to which categories in a department complement each other.

Question 2

A ________ is a group of items targeting the same customer type, such as girls' sizes 4 to 6.

Accepted Answer

A)  stock-keeping unit 
B)  department 
C)  merchandise group 
D)  classification 
E)  merchandise category 
A)  stock-keeping unit 
B)  department 
C)  merchandise group 
D)  classification 
E)  merchandise category

Question 3

How can having a high backup stock adversely affect a retailer?

Accepted Answer

By having a high backup stock,

Question 4

In staple merchandise management systems, the ________ is the amount of inventory below which the quantity available shouldn't go or the item will be out of stock before the next order arrives.

Accepted Answer

A)  service level 
B)  order point 
C)  base stock 
D)  perpetual inventory 
E)  average inventory 
A)  service level 
B)  order point 
C)  base stock 
D)  perpetual inventory 
E)  average inventory

Question 5

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

Accepted Answer

A)  Increasing sales by offering more breadth and depth can potentially reduce inventory turnover. 
B)  Increasing sales by offering more breadth and depth can potentially reduce GMROI by having more stock-keeping units (SKUs). 
C)  Increasing breadth and depth can increase the need to put more merchandise on sale and thus negatively affect the gross margin. 
D)  SKU rationalization programs can help in increasing inventory turnover without reducing sales. 
E)  The more SKUs offered, greater the chance of breaking sizes-running out of a specific size SKU. 
A)  Increasing sales by offering more breadth and depth can potentially reduce inventory turnover. 
B)  Increasing sales by offering more breadth and depth can potentially reduce GMROI by having more stock-keeping units (SKUs). 
C)  Increasing breadth and depth can increase the need to put more merchandise on sale and thus negatively affect the gross margin. 
D)  SKU rationalization programs can help in increasing inventory turnover without reducing sales. 
E)  The more SKUs offered, greater the chance of breaking sizes-running out of a specific size SKU.

Question 6

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

Accepted Answer

A)  The higher the product availability, the greater the amount of backup stock. 
B)  More backup stock is needed in the model stock plan if a retailer wants to increase product availability. 
C)  The quantity of backup stock is fixed by a retailer and is not influenced by product availability. 
D)  If the product availability gets too high, scarce financial resources will be wasted on needless inventory that could be more profitably invested in increasing variety or assortment. 
E)  A very high level of product availability results in a prohibitively high inventory investment. 
A)  The higher the product availability, the greater the amount of backup stock. 
B)  More backup stock is needed in the model stock plan if a retailer wants to increase product availability. 
C)  The quantity of backup stock is fixed by a retailer and is not influenced by product availability. 
D)  If the product availability gets too high, scarce financial resources will be wasted on needless inventory that could be more profitably invested in increasing variety or assortment. 
E)  A very high level of product availability results in a prohibitively high inventory investment.

Question 7

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

Accepted Answer

A)  expected merchandise 
B)  sample merchandise 
C)  staple merchandise 
D)  seasonal merchandise 
E)  fashion merchandise 
A)  expected merchandise 
B)  sample merchandise 
C)  staple merchandise 
D)  seasonal merchandise 
E)  fashion merchandise

Question 8

The retailer's information system determines the ________ by comparing the sales made through the POS terminals with the shipments received by the store.

Accepted Answer

A)  perpetual inventory 
B)  order point 
C)  buffer stock 
D)  cycle stock 
E)  fill rate 
A)  perpetual inventory 
B)  order point 
C)  buffer stock 
D)  cycle stock 
E)  fill rate

Question 9

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

Accepted Answer

A)  The high service level that a retailer tries to achieve 
B)  High fluctuations in demand 
C)  Long lead time for delivery from the vendor 
D)  Fluctuations in vendor lead time 
E)  Frequent store deliveries 
A)  The high service level that a retailer tries to achieve 
B)  High fluctuations in demand 
C)  Long lead time for delivery from the vendor 
D)  Fluctuations in vendor lead time 
E)  Frequent store deliveries

Question 10

Which of the following best describes variety?

Accepted Answer

A)  Product availability 
B)  Inventory that results from a replenishment process 
C)  The percentage of demand for a particular SKU that is satisfied 
D)  The number of SKUs in a store 
E)  The number of different merchandising subcategories within a store 
A)  Product availability 
B)  Inventory that results from a replenishment process 
C)  The percentage of demand for a particular SKU that is satisfied 
D)  The number of SKUs in a store 
E)  The number of different merchandising subcategories within a store

Question 11

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

Accepted Answer

A)  cost plus pricing. 
B)  gross margin. 
C)  gross margin return on investment. 
D)  net profit. 
E)  break-even point. 
A)  cost plus pricing. 
B)  gross margin. 
C)  gross margin return on investment. 
D)  net profit. 
E)  break-even point.

Question 12

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

A)  Coolhunting 
B)  Crowd manipulation 
C)  Focus group interview 
D)  In-depth interview 
E)  Showrooming 
A)  Coolhunting 
B)  Crowd manipulation 
C)  Focus group interview 
D)  In-depth interview 
E)  Showrooming

Question 13

Shorter lead times result in a higher level of backup stock required to maintain the same level of product availability.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not True of fashion merchandise categories?

Accepted Answer

A)  Forecasting the sales for fashion merchandise categories is more challenging than forecasting for staple goods. 
B)  Buyers for fashion merchandise categories have a high degree of flexibility in correcting forecasting errors. 
C)  They have a short life cycle. 
D)  Buyers often do not have a chance to reorder additional merchandise after an initial order is placed. 
E)  New products are continuously being introduced. 
A)  Forecasting the sales for fashion merchandise categories is more challenging than forecasting for staple goods. 
B)  Buyers for fashion merchandise categories have a high degree of flexibility in correcting forecasting errors. 
C)  They have a short life cycle. 
D)  Buyers often do not have a chance to reorder additional merchandise after an initial order is placed. 
E)  New products are continuously being introduced.

Question 15

What are the sources of information for retailers to develop forecasts for fashion merchandise categories?

Accepted Answer

Some sources of information that retaile

Question 16

What are the factors that determine the level of required backup stock?

Accepted Answer

Several factors determine the level of b

Question 17

Which of the following persons is a vendor who forms an alliance with a retailer to help gain consumer insight, satisfy customer needs, and improve performance and profit across a category?

Accepted Answer

A)  Assortment supervisor 
B)  Category captain 
C)  Category manager 
D)  Category specialist 
E)  Consumer advocate 
A)  Assortment supervisor 
B)  Category captain 
C)  Category manager 
D)  Category specialist 
E)  Consumer advocate

Question 18

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

A)  merchandise budget plan 
B)  order point 
C)  assortment plan 
D)  model stock plan 
E)  stock-to-sales ratio 
A)  merchandise budget plan 
B)  order point 
C)  assortment plan 
D)  model stock plan 
E)  stock-to-sales ratio

Question 19

An ABC analysis identifies the performance of individual SKUs in the assortment plan.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following products is not an example of a stock-keeping unit (SKU)?

Accepted Answer

A)  Size 12, white, full sleeve, Ralph Lauren shirts 
B)  Teen necklaces with matching bracelets and rings 
C)  Queen-size Sealy mattress with extra back support and Scotch Guard 
D)  No-ad sunscreen, SPF 50 in 50-ounce squeeze-top dispenser 
E)  V-8 vegetable juice in 32-ounce can 
A)  Size 12, white, full sleeve, Ralph Lauren shirts 
B)  Teen necklaces with matching bracelets and rings 
C)  Queen-size Sealy mattress with extra back support and Scotch Guard 
D)  No-ad sunscreen, SPF 50 in 50-ounce squeeze-top dispenser 
E)  V-8 vegetable juice in 32-ounce can

Which of the following statements about assortment is not True?

A ________ is a group of items targeting the same customer type, such as girls' sizes 4 to 6.

How can having a high backup stock adversely affect a retailer?

In staple merchandise management systems, the ________ is the amount of inventory below which the quantity available shouldn't go or the item will be out of stock before the next order arrives.

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

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

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

The retailer's information system determines the ________ by comparing the sales made through the POS terminals with the shipments received by the store.

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

Which of the following best describes variety?

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

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?

Shorter lead times result in a higher level of backup stock required to maintain the same level of product availability.

Which of the following is not True of fashion merchandise categories?

What are the sources of information for retailers to develop forecasts for fashion merchandise categories?

What are the factors that determine the level of required backup stock?

Which of the following persons is a vendor who forms an alliance with a retailer to help gain consumer insight, satisfy customer needs, and improve performance and profit across a category?

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

An ABC analysis identifies the performance of individual SKUs in the assortment plan.

Which of the following products is not an example of a stock-keeping unit (SKU)?

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Buying Merchandise

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters

Exam 11: Managing the Merchandise Planning Process

Which of the following statements about assortment is not True?

A ________ is a group of items targeting the same customer type, such as girls' sizes 4 to 6.

How can having a high backup stock adversely affect a retailer?

In staple merchandise management systems, the ________ is the amount of inventory below which the quantity available shouldn't go or the item will be out of stock before the next order arrives.

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

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

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

The retailer's information system determines the ________ by comparing the sales made through the POS terminals with the shipments received by the store.

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

Which of the following best describes variety?

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

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?

Shorter lead times result in a higher level of backup stock required to maintain the same level of product availability.

Which of the following is not True of fashion merchandise categories?

What are the sources of information for retailers to develop forecasts for fashion merchandise categories?

What are the factors that determine the level of required backup stock?

Which of the following persons is a vendor who forms an alliance with a retailer to help gain consumer insight, satisfy customer needs, and improve performance and profit across a category?

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

An ABC analysis identifies the performance of individual SKUs in the assortment plan.

Which of the following products is not an example of a stock-keeping unit (SKU)?

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Buying Merchandise

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters