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Lecture Retailing management (6/e): Chapter 13 - Merchandise planning. This chapter presents the following content: Types of buying systems, factors determining backup stock, basic stock list, order point, calculating the order point, shrinkage,. | Chapter 13 Merchandise Planning Merchandise Management Retail Communication Mix Merchandise Planning Systems Planning Merchandise Assortments Buying Merchandise Pricing 13- Types of Buying Systems Staple Merchandise Predictable Demand History of Past Sales Relatively Accurate Forecasts Fashion Merchandise Unpredictable Demand Limited Sales History Difficult to Forecast Sales The McGraw-Hill Companies Inc./Ken Cavanagh Photographer The McGraw-Hill Companies, Inc./Lars A. Niki, photographer 13- Staple Merchandise Planning Staple merchandise planning systems provide information needed to assist buyers by performing three functions: Monitoring and measuring current sales for items at the SKU level Forecasting future SKU demand with allowances made for seasonal variations and changes in trend Developing ordering decision rules for optimum restocking 13- Staple Merchandise Planning Ryan McVay/Getty Images Most merchandise at home improvement centers are staples. 13- Inventory Levels for Staple Merchandise 13- Factors Determining Backup Stock Level of backup depends on product availability retailer wishes to provide The greater the fluctuation in demand, the more backup stock is needed The amount of backup stock needed is also affected by the lead time from the vendor Fluctuations in lead time affect the amount of backup stock Vendor’s product availability affects retailers’ backup stock requirements 13- Relationship between Inventory Investment and Product Availability Product Availability (Percent) 600 500 400 300 200 100 0 80 85 90 95 100 13- Cycle and Backup Stock Units Available Weeks 150 - 100 - 50 - 0 - 1 2 3 4 Order 96 Cycle Stock Buffer Stock 13- Basic Stock List Indicates the Desired Inventory Level for Each SKU Amount of Stock Desired Cost of Carrying Inventory Lost Sale Due to Stockout 13- Inventory Management Report for Rubbermaid Merchandise 13- Order Point Order point = the point at which inventory available . | Chapter 13 Merchandise Planning Merchandise Management Retail Communication Mix Merchandise Planning Systems Planning Merchandise Assortments Buying Merchandise Pricing 13- Types of Buying Systems Staple Merchandise Predictable Demand History of Past Sales Relatively Accurate Forecasts Fashion Merchandise Unpredictable Demand Limited Sales History Difficult to Forecast Sales The McGraw-Hill Companies Inc./Ken Cavanagh Photographer The McGraw-Hill Companies, Inc./Lars A. Niki, photographer 13- Staple Merchandise Planning Staple merchandise planning systems provide information needed to assist buyers by performing three functions: Monitoring and measuring current sales for items at the SKU level Forecasting future SKU demand with allowances made for seasonal variations and changes in trend Developing ordering decision rules for optimum restocking 13- Staple Merchandise Planning Ryan McVay/Getty Images Most merchandise at home improvement centers are staples. 13- .
