Site MapHelpFeedbackSelf Quiz
Self Quiz
(See related pages)

1
_____ is inventory used to guard against going out of stock when demand exceeds forecasts or when merchandise is delayed.
A)cycle stock
B)backup stock
C)base stock
D)Nonledgered inventory
E)BOM inventory
2
Which of the following functions are performed by staple merchandise planning systems?
A)monitoring current sales for items at the SKU level
B)forecasting future SKU demand with allowances for seasonal variations and changes in trend
C)measuring current sales for items at the SKU level
D)developing ordering decision rules for optimum restocking
E)all of the above
3
What does forecasting sales trends for staple merchandise involve?
A)buyers' interviews of vendors
B)lengthy consumer surveys
C)extrapolating sales trends from the past into the future
D)an examination of national consumer buying trends
E)observational marketing research
4
Which of the following is true about merchandise budget plans?
A)All retailers use the same format for establishing their merchandise budget.
B)The process produces a complete buying plan.
C)The budget plan is used to coordinate purchases to coincide with financial goals.
D)The process immediately follows the development of a sales forecast.
E)The budget indicates what kind of merchandise will be purchased.
5
Which of the following statements about merchandise shrinkage is TRUE?
A)The amount of shrinkage is unaffected by seasonal changes.
B)If a store's sales of a particular item increase by 10 percent, its shrinkage will increase by 5 percent.
C)A lead crystal vase that was broken after it was sold is a part of a store's shrinkage.
D)A pair of leather gloves that was shoplifted from a department store's inventory is a part of the store's shrinkage.
E)Shrinkage is always expressed in terms of number or volume of inventory that is uncounted for.
6
Which of the following causes shrinkage?
A)customers' shoplifting
B)misplaced merchandise
C)deviant employee behaviors
D)poor bookkeeping
E)all of the above
7
A BOM sales-to-stock ratio of 4 means:
A)four months of inventory on hand at the beginning of the month
B)twice as much inventory as the distribution center
C)one-half of what it needs for the month
D)one-half of a month's supply
E)one-half of a year's inventory
8
Which of the following statements is NOT true about the open-to-buy system?
A)It is used before the merchandise is purchased.
B)It is based on the merchandise budget plan or staple merchandise management system.
C)It keeps track of merchandise flows while they are occurring.
D)It keeps a record of how much is actually spent purchasing merchandise each month and how much is left to spend.
E)Without the OTB keeping track of merchandise flows, buyers might buy to much or too little.
9
Why is it necessary for a Macy's store to maintain a core assortment regardless of its size?
A)to decentralize the buying function
B)to maintain the image of the chain
C)to shorten lead time
D)to keep from having to maintain buffer stock
E)to make its sales forecasts more accurate
10
A comparison between actual and planned sales to determine whether early markdowns are required or whether more merchandise is needed to satisfy demand is called:
A)product rating system
B)ABC analysis
C)inventory turnover ranking
D)GMROI
E)sell-through analysis





To learn more about the book this website supports, please visit its Information Center.
(c)2009 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Levy 7/e: Retailing ManagementOnline Learning Center

Home > Chapter 13 > Self Quiz