Self Assessment
Assignment Requirements
1. Inventory shrinkage can be a problem for many retailers. How does the merchandise budget planning process account for inventory shrinkage?
2. Using the following information, calculate additions to stock:
Sales: $26,000
EOM stock: $100,000
BOM stock: $88,000
3. Using the following information, calculate the average BOM stock-to-sales ratio for a six-month merchandise budget plan:
GMROI: 130%
Gross Margin: 46%
4. Typically, August school supply sales are relatively low. In September, sales increase tremendously. How does the September stock-to-sales ratio differ from the August ratio?
5. Using the 80-20 principle, how can a retailer make certain it has enough inventory of fast-selling merchandise and a minimal amount of slow-selling merchandise?
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