Question 1

If a buyer lowers planned reductions by $7,000 for the month,this will:

Accepted Answer

A)  reduce planned reductions for the following month by one half that amount; $3,500. 
B)  reduce BOM inventory by $7,000. 
C)  lower this month's OTB by $7,000. 
D)  raise planned purchases by $7,000 for this month. 
E)  raise this month's OTB by $7,000. 
A)  reduce planned reductions for the following month by one half that amount; $3,500. 
B)  reduce BOM inventory by $7,000. 
C)  lower this month's OTB by $7,000. 
D)  raise planned purchases by $7,000 for this month. 
E)  raise this month's OTB by $7,000.

Question 2

A _____ is based on the total amount purchased during a single purchasing event.

Accepted Answer

A)  single purchase discount 
B)  cumulative discount 
C)  noncumulative discount 
D)  one-time discount 
E)  functional discount 
A)  single purchase discount 
B)  cumulative discount 
C)  noncumulative discount 
D)  one-time discount 
E)  functional discount

Question 3

An advantage of using a private label is that some manufacturers will not sell a product to certain retailers.

Accepted Answer

A) True 
 B)False

Question 4

When deciding on which products to stock,buyers encounter all of the following conflicts EXCEPT:

Accepted Answer

A)  maintaining a strong in-stock position on genuinely new items while avoiding the losers. 
B)  maintaining a high turnover goals at the same time you are maintaining a high margin on all items in the store. 
C)  maintaining an adequate selection for customers while not confusing them. 
D)  maintaining space productivity and utilization while not congesting the store. 
E)  maintaining an adequate stock of the "basic" items while still keeping money aside to capitalize on unforeseen opportunities. 
A)  maintaining a strong in-stock position on genuinely new items while avoiding the losers. 
B)  maintaining a high turnover goals at the same time you are maintaining a high margin on all items in the store. 
C)  maintaining an adequate selection for customers while not confusing them. 
D)  maintaining space productivity and utilization while not congesting the store. 
E)  maintaining an adequate stock of the "basic" items while still keeping money aside to capitalize on unforeseen opportunities.

Question 5

"Breadth" refers to the number of different merchandise lines a retailer stocks in its store.

Accepted Answer

A) True 
 B)False

Question 6

_____ occurs when customers or individuals disguised as customers steal merchandise from the retailer's store.

Accepted Answer

A)  Vendor collusion 
B)  Vendor theft 
C)  Shorting 
D)  Employee theft 
E)  Customer theft 
A)  Vendor collusion 
B)  Vendor theft 
C)  Shorting 
D)  Employee theft 
E)  Customer theft

Question 7

The _____ dollar inventory planning technique states that the percentage fluctuations in monthly stock from average stock should be half as great as the percentage fluctuations in monthly sales from average sales.

Accepted Answer

A)  partial stock 
B)  stock-to-sales 
C)  basic stock 
D)  percentage variation 
E)  weeks' supply 
A)  partial stock 
B)  stock-to-sales 
C)  basic stock 
D)  percentage variation 
E)  weeks' supply

Question 8

Gross margin return on inventory (GMROI)is based on both the retailer's inventory turnover and its profit margin.

Accepted Answer

A) True 
 B)False

Question 9

There is no way for retailers to increase their OTB once they have met their limit.

Accepted Answer

A) True 
 B)False

Question 10

Failure to identify a season's hot item(s)early enough is a common buying error.

Accepted Answer

A) True 
 B)False

If a buyer lowers planned reductions by $7,000 for the month,this will:

A _____ is based on the total amount purchased during a single purchasing event.

An advantage of using a private label is that some manufacturers will not sell a product to certain retailers.

When deciding on which products to stock,buyers encounter all of the following conflicts EXCEPT:

"Breadth" refers to the number of different merchandise lines a retailer stocks in its store.

_____ occurs when customers or individuals disguised as customers steal merchandise from the retailer's store.

The _____ dollar inventory planning technique states that the percentage fluctuations in monthly stock from average stock should be half as great as the percentage fluctuations in monthly sales from average sales.

Gross margin return on inventory (GMROI)is based on both the retailer's inventory turnover and its profit margin.

There is no way for retailers to increase their OTB once they have met their limit.

Failure to identify a season's hot item(s)early enough is a common buying error.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 9: Merchandise Buying and Handling

If a buyer lowers planned reductions by $7,000 for the month,this will:

A _____ is based on the total amount purchased during a single purchasing event.

An advantage of using a private label is that some manufacturers will not sell a product to certain retailers.

When deciding on which products to stock,buyers encounter all of the following conflicts EXCEPT:

"Breadth" refers to the number of different merchandise lines a retailer stocks in its store.

_____ occurs when customers or individuals disguised as customers steal merchandise from the retailer's store.

The _____ dollar inventory planning technique states that the percentage fluctuations in monthly stock from average stock should be half as great as the percentage fluctuations in monthly sales from average sales.

Gross margin return on inventory (GMROI)is based on both the retailer's inventory turnover and its profit margin.

There is no way for retailers to increase their OTB once they have met their limit.

Failure to identify a season's hot item(s)early enough is a common buying error.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters