Exam 9: Merchandise Buying and Handling

Supermarkets usually seek to highlight breadth in their inventories.

The three dimensions of the optimal merchandise mix are:

The _____ method of merchandise planning requires that,in addition to a base stock level,there will be a variable amount of inventory that will increase or decrease at the beginning of each sales period.

Trade discounts are illegal when they do not correctly reflect the costs of the intermediaries' services.

When a manufacturer quotes the same price for the same merchandise to buyers in Cleveland,Ohio; Los Angeles,California; and Orlando,Florida the manufacturer is probably quoting the retailers a _____ price.

A common error made by retail buyers is not buying too many trendy fashions.

Seasonal discounts are now illegal in the United States.

_____ refers to the management of merchandise categories,or lines,rather than individual products,as a strategic business unit.

A retailer's primary consideration in choosing a vendor or merchandise source should be the projected markup of the product(s)in question.

Approximately 30 percent of American workers have admitted stealing from their employers.

Employee theft,which amounts to _____ per apprehension,is most prevalent in foods stores,department stores,and discount stores.

Ten days before Halloween,your local candy wholesaler puts all of its Halloween candy on sale.This is an example of which type of discount?

A cash discount with the terms 2/10,net 30,means that the bill is due in full within two weeks or 10 business days in order to claim a 30 percent discount.

Planned purchases at retail are computed as follows:

Generally,the weeks' supply method (WSM)of inventory planning works best when used by retailers who have stable sales from week to week.

The manufacturer is responsible for negotiating the delivery dates of the merchandise when making a purchase.

Extra dating allows the retailer some extra or free days before the period of payment begins.

The _____ is NOT considered when calculating BOM stock using the basic stock method.

Failure to let the vendor assist the buyer by adding new items or new colors to the mix is a common buying error.

Assume that the list price of an item is $1,200 and that the chain of discounts is 40-20-10.How much would a retail buyer pay?