RMG 200 Lecture Notes - Lecture 7: Carrying Cost, Economic Order Quantity, Sales Operations
7 Mar 2016
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Retailers incurs costs when it replaces on product with another o. Retailers also incur costs to evaluate new product proposals o. New product introductions appear to be risky o. Examine how the buying process is organized o. Explore how retailers determine the proitability of the merchandising decisions o. Target market, performance goals, merchandise classiication to focus. Merchandise plan a inancial buying blueprint for each category. Explore how retailers forecast sales for merchandise: category product life cycle. Fashion and trend services, resident buying oice: sales forecasting for service retailers. Insights: reservation at gordon ramsey"s resoutrants: store-level forecasting. Insights: dft @ ah supermarket (nl: deteremine what tradeofs retialers must make to ensue o. Hmv music store: cd, dvd and now books, clothing. Balance between too much versus too little assortment. Review how retailers plan their assortments: width of assortment =# of diferent product categories. Breadth of assortment, variety of assortment: depth of assortment= # of skus within a category o.
