Question 1

Buyers need not compromise on breadth or depth of merchandise to increase product availability.

Accepted Answer

A) True 
 B)False

Question 2

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 
B)  ethnic group 
C)  demogroup 
D)  customer advisory council 
E)  online research community 
A)  focus group 
B)  ethnic group 
C)  demogroup 
D)  customer advisory council 
E)  online research community

Question 3

Which of the following statements is not True of the merchandise classification scheme?

Accepted Answer

A)  A stock-keeping unit (SKU) is the smallest unit available for inventory control. 
B)  In soft goods, a SKU usually means a particular size, color, and style. 
C)  SKUs are the basic units of analysis for making merchandising management decisions. 
D)  The highest classification level is the merchandise group. 
E)  A classification is a group of items targeting the same customer type. 
A)  A stock-keeping unit (SKU) is the smallest unit available for inventory control. 
B)  In soft goods, a SKU usually means a particular size, color, and style. 
C)  SKUs are the basic units of analysis for making merchandising management decisions. 
D)  The highest classification level is the merchandise group. 
E)  A classification is a group of items targeting the same customer type.

Question 4

Which of the following is not a benefit of a high inventory turnover?

Accepted Answer

A)  Continuous availability of new merchandise 
B)  Improved salesperson morale 
C)  Reduced obsolescence risk and markdowns 
D)  New buying opportunities 
E)  Reduced gross margin 
A)  Continuous availability of new merchandise 
B)  Improved salesperson morale 
C)  Reduced obsolescence risk and markdowns 
D)  New buying opportunities 
E)  Reduced gross margin

Question 5

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.

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 6

Why are vendors in a better position to manage a category than a smaller retailer?

Accepted Answer

A)  Retailers manage brands more often than categories. 
B)  Retailers managing merchandise groups have little experience with categories. 
C)  Vendors have superior information through their focus on a specific category. 
D)  Vendors work to manage higher sales within their companies. 
E)  Retailers are traditionally poor category managers. 
A)  Retailers manage brands more often than categories. 
B)  Retailers managing merchandise groups have little experience with categories. 
C)  Vendors have superior information through their focus on a specific category. 
D)  Vendors work to manage higher sales within their companies. 
E)  Retailers are traditionally poor category managers.

Question 7

An open-to-buy system compares

Accepted Answer

A)  a store's perpetual inventory and order point quantity. 
B)  the amount of merchandise in dollars and the sales forecast. 
C)  the planned and actual end-of-month inventory. 
D)  annual sales and backup stock required for merchandise categories. 
E)  the assortment plan and the projected sales volume. 
A)  a store's perpetual inventory and order point quantity. 
B)  the amount of merchandise in dollars and the sales forecast. 
C)  the planned and actual end-of-month inventory. 
D)  annual sales and backup stock required for merchandise categories. 
E)  the assortment plan and the projected sales volume.

Question 8

Which of the following statements is True of the ABC analysis?

Accepted Answer

A)  It compares actual and planned sales to determine the quantity of merchandise needed. 
B)  It uses a weighted-average score for each vendor. 
C)  The A items account for 10 percent of the SKUs and 20 percent of sales. 
D)  The SKUs in a merchandise category are rank-ordered by several performance measures. 
E)  The C items account for 65 percent of SKUs and contribute to 70 percent of sales. 
A)  It compares actual and planned sales to determine the quantity of merchandise needed. 
B)  It uses a weighted-average score for each vendor. 
C)  The A items account for 10 percent of the SKUs and 20 percent of sales. 
D)  The SKUs in a merchandise category are rank-ordered by several performance measures. 
E)  The C items account for 65 percent of SKUs and contribute to 70 percent of sales.

Question 9

________ is the amount of time between the recognition that an order needs to be placed and the point at which the merchandise arrives in the store and is ready for sale.

Accepted Answer

A)  Lead time 
B)  Order time 
C)  Fill rate 
D)  Service level 
E)  Delivery rate 
A)  Lead time 
B)  Order time 
C)  Fill rate 
D)  Service level 
E)  Delivery rate

Question 10

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

Accepted Answer

A)  They consist of items that are in continuous demand over an extended time period. 
B)  The number of new product introductions in these categories is limited. 
C)  The demand for these categories is predictable. 
D)  Because their sales are relatively steady from day-to-day, a periodic inventory system is used. 
E)  Merchandise planning systems for these categories focus on continuous replenishment. 
A)  They consist of items that are in continuous demand over an extended time period. 
B)  The number of new product introductions in these categories is limited. 
C)  The demand for these categories is predictable. 
D)  Because their sales are relatively steady from day-to-day, a periodic inventory system is used. 
E)  Merchandise planning systems for these categories focus on continuous replenishment.

Question 11

Which of the following is an example of staple merchandise?

Accepted Answer

A)  The latest style of denim jeans 
B)  Luggage 
C)  Flannel sheets 
D)  Platform shoes 
E)  Men's black socks 
A)  The latest style of denim jeans 
B)  Luggage 
C)  Flannel sheets 
D)  Platform shoes 
E)  Men's black socks

Question 12

What is the drawback of utilizing category captains?

Accepted Answer

A)  The vendor category captain could take advantage of their position and maximize their own sales. 
B)  Retailers tend to ignore recommendations of the category captain. 
C)  Retailers take advantage of the information and misuse it. 
D)  Retailers can take advantage of their position and minimize competing brands. 
E)  Vendor category captains are not in a good position when compared to retailers to manage a category. 
A)  The vendor category captain could take advantage of their position and maximize their own sales. 
B)  Retailers tend to ignore recommendations of the category captain. 
C)  Retailers take advantage of the information and misuse it. 
D)  Retailers can take advantage of their position and minimize competing brands. 
E)  Vendor category captains are not in a good position when compared to retailers to manage a category.

Question 13

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?

Accepted Answer

A)  Category management 
B)  Quick response inventory management 
C)  Merchandise management 
D)  Inventory control 
E)  Materials procurement and handling 
A)  Category management 
B)  Quick response inventory management 
C)  Merchandise management 
D)  Inventory control 
E)  Materials procurement and handling

Question 14

Which of the following statements holds True for the purchase of staple merchandise?

Accepted Answer

A)  Buyers often do not reorder additional merchandise after placing the first order. 
B)  Buyers for staple merchandise categories have much less flexibility in correcting forecasting errors. 
C)  Staple merchandise is purchased using a continuous replenishment system by monitoring sales and generating replacement orders. 
D)  The staple merchandise buying system requires more experienced buyers. 
E)  The main objective of staple merchandise buying is to be as close to out of stock as possible. 
A)  Buyers often do not reorder additional merchandise after placing the first order. 
B)  Buyers for staple merchandise categories have much less flexibility in correcting forecasting errors. 
C)  Staple merchandise is purchased using a continuous replenishment system by monitoring sales and generating replacement orders. 
D)  The staple merchandise buying system requires more experienced buyers. 
E)  The main objective of staple merchandise buying is to be as close to out of stock as possible.

Question 15

What is the first step in merchandise management planning?

Accepted Answer

A)  Developing a forecast for sales 
B)  Executing a merchandise plan 
C)  Developing a business plan 
D)  Determining the appropriate inventory levels 
E)  Penetrating a new market 
A)  Developing a forecast for sales 
B)  Executing a merchandise plan 
C)  Developing a business plan 
D)  Determining the appropriate inventory levels 
E)  Penetrating a new market

Question 16

Which of the following is not a factor that determines the level of required backup stock?

Accepted Answer

A)  The product availability the retailer wishes to provide 
B)  Fluctuations in demand 
C)  Lead time for delivery from the vendor 
D)  Fluctuations in vendor lead time 
E)  Price of the product 
A)  The product availability the retailer wishes to provide 
B)  Fluctuations in demand 
C)  Lead time for delivery from the vendor 
D)  Fluctuations in vendor lead time 
E)  Price of the product

Question 17

What is the difference between variety and assortment?

Accepted Answer

In the context of merchandise planning,

Question 18

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

Accepted Answer

A)  Expected merchandise categories 
B)  Sample merchandise categories 
C)  Staple merchandise categories 
D)  General merchandise categories 
E)  Fashion merchandise categories 
A)  Expected merchandise categories 
B)  Sample merchandise categories 
C)  Staple merchandise categories 
D)  General merchandise categories 
E)  Fashion merchandise categories

Question 19

After developing a plan and allocating the merchandise, the next step in the merchandise planning process involves

Accepted Answer

A)  replenishing the inventory levels. 
B)  planning for the following season. 
C)  analyzing the performance and making adjustments. 
D)  discussing buybacks with the vendors. 
E)  penetration of new markets. 
A)  replenishing the inventory levels. 
B)  planning for the following season. 
C)  analyzing the performance and making adjustments. 
D)  discussing buybacks with the vendors. 
E)  penetration of new markets.

Question 20

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

Accepted Answer

A) True 
 B)False

Buyers need not compromise on breadth or depth of merchandise to increase product availability.

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.

Which of the following statements is not True of the merchandise classification scheme?

Which of the following is not a benefit of a high inventory turnover?

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.

Why are vendors in a better position to manage a category than a smaller retailer?

An open-to-buy system compares

Which of the following statements is True of the ABC analysis?

________ is the amount of time between the recognition that an order needs to be placed and the point at which the merchandise arrives in the store and is ready for sale.

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

Which of the following is an example of staple merchandise?

What is the drawback of utilizing category captains?

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?

Which of the following statements holds True for the purchase of staple merchandise?

What is the first step in merchandise management planning?

Which of the following is not a factor that determines the level of required backup stock?

What is the difference between variety and assortment?

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

After developing a plan and allocating the merchandise, the next step in the merchandise planning process involves

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

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

Buyers need not compromise on breadth or depth of merchandise to increase product availability.

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.

Which of the following statements is not True of the merchandise classification scheme?

Which of the following is not a benefit of a high inventory turnover?

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.

Why are vendors in a better position to manage a category than a smaller retailer?

An open-to-buy system compares

Which of the following statements is True of the ABC analysis?

________ is the amount of time between the recognition that an order needs to be placed and the point at which the merchandise arrives in the store and is ready for sale.

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

Which of the following is an example of staple merchandise?

What is the drawback of utilizing category captains?

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?

Which of the following statements holds True for the purchase of staple merchandise?

What is the first step in merchandise management planning?

Which of the following is not a factor that determines the level of required backup stock?

What is the difference between variety and assortment?

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

After developing a plan and allocating the merchandise, the next step in the merchandise planning process involves

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

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