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rfa exam 1
| Question | Answer |
|---|---|
| What are the 3 corporate merchandising functions? | Buying; Planning and Allocation; Product Development |
| What is the main goal of merchandising? | To manage inventory speed in order to achieve profit goals |
| What does a Buyer primarily manage? | A multi million dollar department with direct profit and loss responsibility |
| What does Planning and Allocation control? | Financial forecasting, inventory budgets, and store allocation |
| What is Product Development responsible for? | Private label development, sourcing, vendor communication, and product tracking |
| What strengths are needed in Buying? | Prioritization, teamwork, problem solving, Excel skills, trend analysis |
| What strengths are needed in Planning? | Strong analytical skills, forecasting ability, Excel proficiency |
| What is the 4-5-4 calendar? | A retail calendar with 4 weeks, 5 weeks, and 4 weeks per quarter totaling 13 weeks |
| How many weeks are in one quarter of the 4-5-4 calendar? | 13 weeks |
| What month does the retail 4-5-4 year end with? | January |
| What months are in Spring in the 4-5-4 calendar? | February through July |
| August September October are in what quarter? | Third Quarter |
| How many weeks are in fiscal April in 4-5-4? | 4 weeks |
| What is Sell Through percentage? | The percent of inventory sold out of what was available to sell |
| Sell Through formula | Units Sold divided by Available to Sell |
| How do you calculate Available to Sell? | Beginning Inventory plus Receipts |
| How should Sell Through be rounded? | One decimal place and always include a percent sign |
| If 65 sold out of 310 what is ST percent? | 21.0 percent |
| What does high sell through indicate? | Strong selling and possible need to reorder |
| What does low sell through indicate? | Slow selling and possible markdown or RTV |
| What is Weeks of Supply? | How many weeks inventory will last at the current selling rate |
| Weeks of Supply formula | On Hand divided by Average Weekly Sales |
| How do you calculate Average Weekly Sales? | Total units sold divided by number of weeks |
| If On Hand is 2973 and average weekly sales is 625.4 what is WOS? | 4.8 |
| How should WOS be rounded? | One decimal place with no percent sign |
| What does high WOS indicate? | Too much inventory and possible RTV |
| What does low WOS indicate? | Risk of selling out and need to reorder |
| How do you calculate units to order to reach planned WOS? | Planned WOS times Average Weekly Sales minus Current On Hand |
| If planned WOS is 10.5 average weekly sales is 235.5 and OH is 1373 how many units to order? | 1100 units |
| How do you calculate RTV units? | Current On Hand minus Planned WOS times Average Weekly Sales |
| If planned WOS is 8 average weekly sales is 30.8 and OH is 616 how many units RTV? | 370 units |
| What must you do immediately after calculating RTV? | Cancel any on order units |
| What is the percent change formula for TY versus LY? | TY minus LY divided by LY |
| If TY is 1258000 and LY is 1200000 what is percent change? | Positive 4.8 percent |
| What are Comp Stores? | Stores open both last year and this year |
| What is a selling ratio? | Item A sales divided by Item B sales |
| What is an inventory ratio? | Item A on hand divided by Item B on hand |
| If selling ratio is higher than inventory ratio what should you order more of? | Order more of the item with the higher selling ratio |
| If selling ratio is lower than inventory ratio what does that mean? | You have too much inventory of that item |
| IMU formula | Retail minus Cost divided by Retail |
| If retail is 28 and cost is 11 what is IMU? | 60.7 percent |
| How do you calculate total company percent change? | Add total TY sales minus total LY sales divided by total LY sales |
| What is the formula for Sell Through to date end of season? | Total Sales divided by Total Available to Sell for the season |
| How do you calculate Available to Sell for a new month? | Beginning On Hand from prior month plus new receipts |
| What does STD Sell Through mean? | Season to Date Sell Through |
| What does LTD Sell Through mean? | Life to Date Sell Through |
| If WOS is above plan what action should you take? | RTV or reduce inventory |
| If WOS is below plan what action should you take? | Reorder more units |
| What rounding rule is critical for this exam? | Sell Through one decimal with percent sign and WOS one decimal without percent |
| It is important to understand the what to question the what? | Inputs to question the Outputs |
Created by:
tmanderson5