Professional Documents
Culture Documents
Merchandise Management
Retail Planning
Communication Merchandise
Mix Assortments
Merchandise
Planning
Systems
Buying
Pricing
Merchandise
Types of Buying Systems
600
500
400
300
200
100
0
80 85 90 95 100
Product Availability (Percent)
Cycle and Backup Stock
150 -
Order 96
Cycle
Stock
Units Available
100 -
Buffer
Stock
50 -
0-
1 2 3 4
Weeks
Basic Stock List
Cost of Carrying
Inventory
Order Point
∑I
i =1
j *Pij = Sum of the expression
Pi
= Performance evaluation for
jth brand alternative on the
jth issue
1 = Not important
10 = Very important
Evaluating Vendors
A buyer can evaluate vendors by using the following
five steps:
• Develop an overall score by multiplying the importance for each issue the
performance for each brand or its vendor
Retail Inventory Method (RIM)
Two Objectives:
– To maintain a perpetual or book inventory of
retail dollar amounts.
– To maintain records that make it possible to
determine the cost value of the inventory at
any time without taking a physical inventory.
Retail Inventory Method: The
Problem
Retailers generally think of their inventory at retail price
levels rather than at cost. When retailers compare their
prices to competitors’, they compare their retail prices. The
problem is that when retailers design their financial plans,
evaluate performance and prepare financial statements,
they need to know the cost value of their inventory.
The ending book inventory at cost is determined in the same way that retail
has been changed to cost in other situations – multiply the retail times
(100% - gross margin percentage)