Term
Chapter 7
components of merchandise budget |
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Definition
planned sales
stock inventory
planned reductions
planned purchases |
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Term
Chapter 7
what is the foundation of a merchandise budget?
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Definition
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Term
Chapter 7
Two methods of calculating planned sales |
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Definition
- (decrease) % change= last year- this year/ last year
-(increase) % change= this year- last year/ last year
- space productivity method= sales/ square foot |
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Term
Chapter 7
Three forms of planned reductions? |
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Definition
markdowns (highest)
employee discounts
inventory storage |
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Term
Chapter 7
The final stage of budgeting process- planned purchase |
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Definition
| planned purchase= planned sales +planned reduction + planned EOM- BOM |
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Term
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Definition
-the amount of $ to be spent from an existing budget after some purchase have been made
- derived based on planned purchases |
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Term
Chapter 7
Difference between planned purchases and OTB |
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Definition
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Term
Chapter 7
Average inventory |
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Definition
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Term
Chapter 7
Planned Purchases |
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Definition
| Planned sales + Planned reduction + EOM - BOM |
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Term
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Definition
| Planned Purchases - merchandise on order |
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Term
Chapter 8
What is assortment planning |
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Definition
| the determination or the range or choices to be made available at a given time |
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Term
Chapter 8
assortment factor |
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Definition
| dimensions that defines characteristics of a product |
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Term
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Definition
a unique piece of merchandise
defined by assortment factors/ elements |
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Term
Chapter 8
assortment depth |
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Definition
# of items within each product line
# of SKUs in each category |
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Term
Chapter 8
Assortment Volume
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Definition
| total number of units in an assortment |
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Term
Chapter 8
assortment volume= |
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Definition
| merchandise budget/ average retail price |
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Term
Chapter 8
volume per assortment factor= |
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Definition
volume per style total x color %
volume per style total x size % |
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Term
Chapter 8
Volume per SKU= |
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Definition
| # of units per style x % color x % size |
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Term
Chapter 8
What is assortment diversity?
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Definition
| relationship between assortment volume and assortment depth |
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Term
Chapter 8
How to calculate VSA= |
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Definition
| total volume per style / SKU |
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Term
Chapter 11
What is sourcing |
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Definition
| the process of purchasing products to meet a company objective |
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Term
Chapter 11
Three options for sourcing |
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Definition
1. internal manufacturing
2. External manufacturing
3. Combo or both |
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Term
Chapter 11
Internal Manufacturing |
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Definition
manufacturing products in the firms own plant
D: substantial capital investment
A: more control over production
quality standards
response time/ flexibility |
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Term
Chapter 11:
External Manufacturing |
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Definition
outside contractors used
D: higher support costs
communication and cultural challenges
quota and customs problems
A: less financial investment
lower labor cost
sources of expertise |
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Term
Chapter 11
Full Package sourcing
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Definition
the contractor provides everything required to make garments
- product design, development, raw material, sourcing, production ...
A: limiter technical knowledge required
limited investment |
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Term
Chapter 11
Cut, Make, Trim
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Definition
the sourcing company provides design, product specs, and materials
A: control over design and raw materials
less threat of knockoff
flexibility |
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Term
Chapter 11
Difference between capacity and minimum? |
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Definition
C: financial, plant space, workforce
M:important factor for fashion goods, labor skills and equipments assessment |
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Term
Chapter 11
What is through put time/ lead time |
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Definition
| the time it takes for an order to be processed from authorization to shipping merchandise for sale |
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Term
Chapter 11
How to reduce throughput time
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Definition
automation system
careful selection of sourcing country/ contractor
transportation system
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Term
Chapter 11
Tariffs vs. Quotas
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Definition
T (duty): taxes charged on goods
Q: wholesale price or cost- measure of quantity imported in dollars |
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Term
Chapter 11
What is the "square meter equivalents" |
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Definition
| the amount of fabric required to make a garment or a group of garments |
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Term
Chapter 11
Preliminary Sourcing Certificate vs. Bill of Landing |
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Definition
PIC:perpare for production
Bill of Landing: Shipping and importing
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Term
Chapter 12
purpose of vendor relations
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Definition
control, communication, and collaboration among retailers wholesales manufacturers and or suppliers
- mutual goals
concept of quick response |
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Term
Chapter 12
Process of relationship development
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Definition
awareness
↓
Exploration
↓↑
Expansion
’ ‘
trust and commitment dissolution
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Term
Chapter 12
return and cancellation policies
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Definition
part of purchase order
returns authorization #
exceptions
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Term
Chapter 12
What is source tagging |
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Definition
the application of electronic atricle surveillance
EAS labels into products or packaging |
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Term
Chapter 12
Forms of Markdown allowance in vendor relations
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Definition
vendors can share risk of markdowns on merch
- return agreements
-compensation provided to the retailer against future purchases |
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Term
Chapter 12
Forms of Promotional support
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Definition
corporate advertising
premiums
product demonstration
samples
contests and drawing
etc... |
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