QUESTION 1 ________________________ is used to determine the balance of purchase

Question

QUESTION 1

________________________ is used to determine the balance of purchases remaining, in dollars or in units, for any given period and it is used as a control device to see that purchasing is done according to the merchandise plan.

QUESTION 2

This type of plan is used by buyers of fashion goods and provides an assortment of stock broken down according to identifiable selection factors, such as fabric, color, size, and classification at a specific point in time: _____________________________

QUESTION 3

If the buyer does not have sufficient OTB to make a desired purchase, which of the following actions would increase the buyer’s OTB?

Increase planned markdowns

Return merchandise to vendor

Cancel outstanding orders

All of the above

QUESTION 4

What is the first step in developing an assortment plan?

Determine the amount of planned open-to-buy.

Identify the selection factors that are most important to the customer.

Calculate actual sales for last year.

Complete the dollar merchandise plan

QUESTION 5

This consists of the items and number of units of merchandise that are to be maintained continuously in stock.

Model stock plan

Basic stock list

Dollar merchandise plan

OTB plan

QUESTION 6

A buyer’s sales for October are estimated at $15,000. Her stock on October 1 is $38,000, and she has $11,000 stock at retail on order for the month. Markdowns are planned at 8% for the month, and the planned EOM stock is $40,000. Determine the OTB on October 1.

QUESTION 7

Given the following figures, determine the OTB as of October 10:

Stock on hand, October 10                 $122,000

Stock on order                                       16,200

Planned BOM stock, November 1      124,000

Planned sales for the month                   59,500

Actual sales as of October 10                23,500

Planned markdowns for October              2,380

Actual markdowns as of October 10      1,200

QUESTION 8

A buyer had an inventory at the beginning of the month of $120,000 and a planned EOM stock of $135,000. On the first of the month the buyer had merchandise on order of $55,000 to be delivered during the month. Planned markdowns for the month were $7,000 and planned sales were $85,000. The planned initial markup was 51%. Find the buyers OTB for the month at cost.

QUESTION 9

The rate of sale for a swing set is estimated at 8 per week. The buyer places orders every 5 weeks, and delivery takes 5 weeks. A reserve equal to 2 weeks’ sales is maintained. If there are 20 sets on hand and 15 on order, what is the unit open-to-buy?

47

76

96

61

QUESTION 10

Which of the following statements is true of open-to-buy?

It does not rely on a merchandise plan.

It can only be determined in dollars not units.

It cannot be determined unless the amount of stock on hand is know.

None of the above.

Increase planned markdowns

Return merchandise to vendor

Cancel outstanding orders

All of the above

Explanation / Answer

1. Open-to-Buy

2. Model Stock Plan (Fashion Merchadise)

3.All of the above

4.Identify the selection factors that are most important to the customer.

5. Basic Stock List.

6. $7,200

7.$22,980

8.$25,480

9.61

10. It cannot be determined unless the amount of stock on hand is known.

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