HUEC 3043 Chapter : Chapter 5
Document Summary
Merchandise plan: it forecasts and controls the purchase and sale of merchandise, in action, the 6 month plan keeps balance between sales and stock. Why a dollar plan: decrease dollars invested in inventory. Increase turnover: control open to buy, allow for improvement over last years figures, reduce loss of sales due to understocked merchandise. Improve gross margin: provide a point of reference for comparing actual results to planned performance. 3 planning markdowns: planning markdowns, planning markups, planning purchases. Planning sales: sales should almost always have an increase. A reason for a decrease in sales would be: A classification of merchandise from the previous year moving from your department to a department of its own. When a classification is no longer valid or profitable for the store, it is deleted. Planning sales: the key is the projection of planned y g sales, the hub of all elements in the buying and selling circle.
