RMG 200 Chapter Notes -Electronic Data Interchange, Markdown, Data Warehouse

• School: Ryerson University
• Department: Retail Management
• Course: RMG 200
• Professor: Brent Barr

Document Summary

Analyzing merchandise performance: abc analysis evaluating the assortment plan and vendors. This principle suggests that retailers should concentrate on products that provide the biggest return. This rank order reveals the general 80-20 principle (80% of a retailer"s sales or profits come from 20% of the products) 5% of items and represent 70% of sales. 10% of the skus and an additional 20% of sales. 65% of skus but contribute only 10% of sales. Can be expensive to carry because they generally require high levels of backup stock to buffer against variations in demand and lead time. Includes some of the other better selling colours and patterned shirts. Occasionally it will run out of some skus in the b category because its not carrying the same amount of backup stock as for a items. Planner may plan to carry c items in only certain odd sizes, with special orders used to solve out of stock conditions.