RMG 200 Lecture Notes - Shoplifting, Weighted Arithmetic Mean, Business Process

• School: Ryerson University
• Department: Retail Management
• Course: RMG 200
• Professor: Ken Wong

Document Summary

Retailers use two distinct types of buying systems: A staple merchandise buying system for basics forecasting system much more straightforward. A merchandise budget for fashion merchandise no history. Does not work well with fashion merchandise. Planning merchandise assortments: organize the buying process by categories, set merchandise financial objectives, develop an assortment plan. Buying systems: staple/fashion merchandise buying system, open-to-buy systems, allocate merchandise to stores, analyze merchandise performance. Monitoring and measuring average current demand 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. The more the retailer purchases at one time, the higher the carrying costs, but the lower the buying and handling costs. An inventory reduction that is caused by shoplifting by employees or customers by merchandise being misplaced or damaged or by poor bookkeeping. As merchandise sells, it must replenished either by the vendor or through distribution centres.