Merchandise and Inventory-
Retail Operations Planning
Tools EXAM QUESTIONS AND
VERIFIED CORRECT
ANSWERS GRADED A+
[LATEST] 100% GUARANTEED
PASS
What is the likely result of a high turnover rate? - CORRECT ANSWER-increased sales, fewer
markdown, new trend setter, lower expense, higher employee morale, higher return investment
What is a result of a low turnover rate in the golf shop merchandising operation? - CORRECT
ANSWER-staff items, big markdowns, low profits, high expense
If your average inventory value is $37,000, and your annual cost of goods sold is $114,000, what
is the turnover rate? - CORRECT ANSWER-114,000/37,000=3.08
Which merchandising condition is most directly correlated with a high turn rate? - CORRECT
ANSWER-less inventory
Given the following information, what was the turnover rate for the year?
Sales- $196,000
COGS- $140,000
Ave Inventory- $56,000
Glove Sales- $24,000
, Men's Shirt sales- $54,000
Rounds- 20,000 - CORRECT ANSWER-140,000/56,000=2.5
Some OTB funds should be reserved for unforeseen opportunities. (t/f) - CORRECT ANSWER-
true
Based on the information below, what is the open-to-buy amount for july?
July- August
Sales $17,000 $12,500
COGS $12,000 $9,000
BOMI $50,000 $41,000 - CORRECT ANSWER-50,000+12,000-50,000=12,000
What is the formula to determine monthly OTB dollars? - CORRECT ANSWER-planned OTB at
cost - merchandise on order=actual OTB at cost
In an open-to-buy budget, how is average inventory defined? - CORRECT ANSWER-average
amount of merchandise (in cost dollars) the facility must have on hand throughout the year to
meet annual sales goals
What is the formula for calculating planned OTB? - CORRECT ANSWER-(EOMI + COGS -
BOMI)=Planned OTB at cost
What does an open-to-buy reserve provide? - CORRECT ANSWER-10%-25% for other
opportunities/unplanned purchases
Merchandise that the competition carries is a factor to be considered in the merchandise
assortment plan. (t/f) - CORRECT ANSWER-true
Retail Operations Planning
Tools EXAM QUESTIONS AND
VERIFIED CORRECT
ANSWERS GRADED A+
[LATEST] 100% GUARANTEED
PASS
What is the likely result of a high turnover rate? - CORRECT ANSWER-increased sales, fewer
markdown, new trend setter, lower expense, higher employee morale, higher return investment
What is a result of a low turnover rate in the golf shop merchandising operation? - CORRECT
ANSWER-staff items, big markdowns, low profits, high expense
If your average inventory value is $37,000, and your annual cost of goods sold is $114,000, what
is the turnover rate? - CORRECT ANSWER-114,000/37,000=3.08
Which merchandising condition is most directly correlated with a high turn rate? - CORRECT
ANSWER-less inventory
Given the following information, what was the turnover rate for the year?
Sales- $196,000
COGS- $140,000
Ave Inventory- $56,000
Glove Sales- $24,000
, Men's Shirt sales- $54,000
Rounds- 20,000 - CORRECT ANSWER-140,000/56,000=2.5
Some OTB funds should be reserved for unforeseen opportunities. (t/f) - CORRECT ANSWER-
true
Based on the information below, what is the open-to-buy amount for july?
July- August
Sales $17,000 $12,500
COGS $12,000 $9,000
BOMI $50,000 $41,000 - CORRECT ANSWER-50,000+12,000-50,000=12,000
What is the formula to determine monthly OTB dollars? - CORRECT ANSWER-planned OTB at
cost - merchandise on order=actual OTB at cost
In an open-to-buy budget, how is average inventory defined? - CORRECT ANSWER-average
amount of merchandise (in cost dollars) the facility must have on hand throughout the year to
meet annual sales goals
What is the formula for calculating planned OTB? - CORRECT ANSWER-(EOMI + COGS -
BOMI)=Planned OTB at cost
What does an open-to-buy reserve provide? - CORRECT ANSWER-10%-25% for other
opportunities/unplanned purchases
Merchandise that the competition carries is a factor to be considered in the merchandise
assortment plan. (t/f) - CORRECT ANSWER-true
