The document discusses merchandise planning and management systems for retailers. It describes staple and fashion merchandise categories and the different systems used for each. Staple items have predictable demand and use continuous replenishment systems. Fashion items have unpredictable demand and use merchandise budget plans and open-to-buy systems to allocate funds and monitor spending. The document provides details on how these systems work, including calculating order points, order quantities, and developing merchandise budget plans.

1. Chapter 13 Merchandise Planning Systems

2. Merchandise Management 13- Retail Pricing Chapter 15 Retail Communication Mix Chapter 16 Merchandise Planning Systems Chapter 13 Managing Merchandise Assortments Chapter 12 Buying Merchandise Chapter 14

6. Inventory Levels for Staple Merchandise 13- Cycle (base) stock : inventory that goes up and down due to the replenishment process Backup (buffer, safety) stock Inventory needed to avoid stockout

7. Inventory Levels for Staple Merchandise 13- Retailers try to reduce the stock level to keep Inventory Investment low by reordering and receiving merchandise often but without increased administrative and transportation costs with frequent reorders

10. 13- Relationship between Inventory Investment and Product Availability Product Availability (Percent) 600 500 400 300 200 100 0 80 85 90 95 100

12. Staple Merchandise Management 13- Ryan McVay/Getty Images Most merchandise at home improvement centers are staples.

13. Inventory Management Report for Rubbermaid Merchandise 13- Inventory available sales rate Performance measures Backup stock for desired product availability desired product availability Sales forecasts Appropriate ordering decisions

17. Inventory Management Report for Rubbermaid SKUs 13- Avocado Bath Mat Quantity available = Quantity on Hand + Quantity on Order = 90 Order Quantity = Order Point – Quantity Available Order Quantity = 132 – 90 = 42

21. Six Month Merchandise Plan for Men’s Casual Slacks 13-

27. Monthly Reductions (Line 4) 13- Reduction % Distribution 3. Month % 6 mo. data April May June July Aug Sept 100.00% 40.00% 14.00% 16.00% 12.00% 10.00% 8.00% 4. mo. reductions $16,500 $6,600 $2,310 $2,640 $1,980 $1,650 $1,320 Monthly Reductions = Total reductions x Monthly reduction %

38. Six Month Open-to-Buy 13-

43. Sales of Capri Pants by Region 13- Timing of Merchandise Allocation to Stores Seasonality differences and consumer demand differences

45. Sell Through Analysis Evaluating Merchandise Plan 13- A sell-through analysis compares actual and planned sales to determine whether more merchandise is needed to satisfy demand or whether price reductions are required.

48. Multiattribute Method for Evaluating Vendors 13- The multiattribute method for evaluating vendors uses a weighted average score for each vendor. The score is based on the importance of various issues and the vendor’s performance on those issues. C Squared Studios/Getty Images

49. Multiattribute Method for Evaluating Vendors 13-

51. Home Depot’s Vendor Evaluation 13- Home Depot take vendor evaluations seriously. Home Depot’s vendor analysis scorecard gives everyone a quick view of how the vendor is doing. Green is good, but red isn’t.