When a retail stores estimates how much customers will purchase based on a previous years seasons sales.

MERCHANDISING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

When a retail stores estimates how much customers will purchase based on a previous year’s season’s sales.

A	Planned sales
B	Planned stocked reductions
C	Planned stock
D	Planned retail purchases

Explanation:

Detailed explanation-1: -Planned purchases = Planned Sales + Planned Reductions + Planned EOM – Planned BOM. Let us understand this concept with the help of the following example: Sonali is a buyer in a Department Store and wants to plan purchases for the next month.

Detailed explanation-2: -Cost of goods + Markup = Retail Price: This formula is used to calculate the retail price of an item. The cost of the goods is added to the markup, which is a percentage of the cost that is added to the price, to arrive at the retail price.

Detailed explanation-3: -Planned purchases at retail is equal to: planned sales, planned reductions, and planned EOM inventory minus BOM inventory.

Detailed explanation-4: -Assortment Planning This helps the retailer determine the number and type of each product to be bought for ensuring that demand is met.

There is 1 question to complete.

MANAGEMENT

BUISENESS MANAGEMENT

MERCHANDISING