Question 1

Which of the following is not True of a fashion merchandise category?

Accepted Answer

A)   It consists of items that are only in demand for a relatively short period of time.
B)   New products are continually introduced into these categories.
C)   The introduction of new products makes the existing products obsolete.
D)   The change of colors and styles can make the basic product fashion merchandise.
E)   Forecasting sales for this category is simplistic and predictable. E

Question 2

Which of the following factors is considered by retailers in making merchandise allocation and promotion decisions specific to difficult economic times?

Accepted Answer

A)   Shrinkage
B)   Paycheck cycle
C)   Buffer stock
D)   Backup stock
E)   Fill rate B

Question 3

Which of the following is not True of category management?

Accepted Answer

A)   Managing merchandise within a category by brand can lead to inefficiencies because it fails to consider the interdependencies between SKUs in the category.
B)   The category management approach to managing breakfast cereals in supermarkets should have one buyer or category manager who oversees all merchandising activities for the entire category.
C)   A category manager ensures that the store's assortment includes the "best" combination of sizes and vendors.
D)   A category manager chooses vendors that will get the most profit from the allocated space.
E)   A category manager is also called a category captain and works with vendors to get the most profit from collaborative relationships. E

Question 4

Which of the following statements is not a potential problem with appointing vendors as category captains?

Accepted Answer

A)   Appointing vendors as category captains makes merchandise management tasks difficult for retailers.
B)   Vendors could take advantage of their position by suggesting an assortment plan that includes most of its SKUs and exclude other SKUs that contribute more so to the retailer's profitability.
C)   The vendor category captain could collude with the retailer to fix prices.
D)   The vendor category captain could block other brands from access to shelf space.
E)   The dependence on the vendor category captain may cause a retailer to miss opportunity for increasing margins through their private-label SKUs.

Question 5

Which of the following is True of the forecasting approach for staple merchandise categories?

Accepted Answer

A)   Buyers need to find out what customers are going to want in the future.
B)   Forecasts are typically based on extrapolating historical sales.
C)   Buyers for these categories rely heavily upon forecast services.
D)   Buyers for these categories conduct focus group studies to find out consumers' opinions.
E)   Buyers for these categories depend upon category sales forecasts which vendors provide.

Question 6

________ of a retailer's merchandise is the number of SKUs within a subcategory.

Accepted Answer

A)   Merchandise breadth
B)   Horizontal integration
C)   Variety
D)   Assortment
E)   Merchandise mixture

Question 7

The percentage of SKUs received complete on a particular order from a vendor is called the

Accepted Answer

A)   product availability.
B)   order rate.
C)   fill rate.
D)   service level.
E)   delivery rate.

Question 8

Fashion merchandise consists of items that are in continuous demand over an extended time period.

Accepted Answer

A) True 
 B)False

Question 9

________ of a merchandise category is the number of different merchandising subcategories offered.

Accepted Answer

A)   Merchandise depth
B)   Classification
C)   Variety
D)   Assortment
E)   Merchandise mixture

Question 10

Which of the following merchandise systems focuses on staying as close to out of stock as possible?

Accepted Answer

A)   Fashion merchandise management system
B)   Assortment driven management system
C)   Historical precedence management system
D)   Staple merchandise management system
E)   Allocated space management system

Question 11

The merchandise budget plan

Accepted Answer

A)   is used to keep track of the actual merchandise flows.
B)   specifies the level of inventory needed to support the sales.
C)   compares actual and planned sales to determine whether more merchandise is needed.
D)   identifies the performance of individual SKUs in the assortment plan.
E)   uses a weighted-average score for each vendor.

Question 12

Explain briefly the ABC analysis method for analyzing merchandise management performance.

Accepted Answer

The answer of Explain briefly the ABC analysis method for...

Question 13

Since sales and the arrival of merchandise from vendors can't be predicted with perfect accuracy, retailers have to carry

Accepted Answer

A)   backup stock.
B)   basic merchandise.
C)   perpetual inventory.
D)   cycle stock.
E)   base stock.

Question 14

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

Accepted Answer

A)   Cycle stock
B)   Backup stock
C)   Basic stock
D)   Perpetual inventory
E)   Order point

Question 15

Buyers, divisional merchandise managers, and general merchandise managers are some of those who undertake the responsibilities of merchandise management.

Accepted Answer

A) True 
 B)False

Question 16

The highest classification level in the buying organization is the merchandise category.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)   It is the second level in the merchandise classification scheme.
B)   It is at a lower level than the merchandise group in the merchandise classification scheme.
C)   It is a level higher than classification in the merchandise classification scheme.
D)   The DMM, who manages the department, is responsible for several merchandise classifications.
E)   It is managed by a general merchandise manager (GMM) .

Question 18

Which of the following is a result of high inventory turnover?

Accepted Answer

A)   Improved employee morale
B)   A decrease in the cost of goods sold
C)   An increase in promotions and markdowns
D)   Higher risk of product obsolescence
E)   A decrease in profits

Question 19

The quantity of merchandise has a bigger impact on profitability than allocation decisions.

Accepted Answer

A) True 
 B)False

Question 20

The ________ method for evaluating vendors uses a weighted-average score for each vendor.

Accepted Answer

A)   sell-through analysis
B)   GMROI
C)   ABC analysis
D)   inventory turnover analysis
E)   multiattribute analysis

Exam 11: Managing the Merchandise Planning Process

Which of the following is not True of a fashion merchandise category?

Which of the following factors is considered by retailers in making merchandise allocation and promotion decisions specific to difficult economic times?

Which of the following is not True of category management?

Which of the following statements is not a potential problem with appointing vendors as category captains?

Which of the following is True of the forecasting approach for staple merchandise categories?

________ of a retailer's merchandise is the number of SKUs within a subcategory.

The percentage of SKUs received complete on a particular order from a vendor is called the

Fashion merchandise consists of items that are in continuous demand over an extended time period.

________ of a merchandise category is the number of different merchandising subcategories offered.

Which of the following merchandise systems focuses on staying as close to out of stock as possible?

The merchandise budget plan

Explain briefly the ABC analysis method for analyzing merchandise management performance.

Since sales and the arrival of merchandise from vendors can't be predicted with perfect accuracy, retailers have to carry

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

Buyers, divisional merchandise managers, and general merchandise managers are some of those who undertake the responsibilities of merchandise management.

The highest classification level in the buying organization is the merchandise category.

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

Which of the following is a result of high inventory turnover?

The quantity of merchandise has a bigger impact on profitability than allocation decisions.

The ________ method for evaluating vendors uses a weighted-average score for each vendor.