Term
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Definition
| the analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation |
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Term
| Gross Margin Return on Inventory (GMROI) |
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Definition
| gross margin divided by average inventory at cost; alternatively, it is the gross margin percent multiplied by net sales |
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Term
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Definition
| a technique for planning dollar inventory investments and allows for a base stock level plus a variable amount of inventory that will increase or decrease at the beginning of each sales period in the same dollar amount as the period's expected sales |
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Term
| Percentage Variation Method (PVM) |
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Definition
| a technique for planning dollar inventory investments that assumes that the percentage fluctations in monthly stock from average stock should be half as great as the percentage fluctuations in monthly sales from average sales |
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Term
| Weeks Supply Method (WSM) |
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Definition
| a technique for planning dollar inventory investments that states that the inventory level should be set equal to a predetermined number of weeks' supply, which is directly related to the desired rate of stock turnover |
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Term
| Stock to Sales Method (SSM) |
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Definition
| a technique for planning dollar inventory investments where the amount of inventory planned for the beginning of the month is a ratio (obtained from trade associations or the retailers historical records) of stock-to-sales |
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Term
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Definition
| the dollar amount that a buyer can currently spend on merchandise without exceeding the planning dollar stocks |
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Term
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Definition
| a group of products that are closely related because they are intended for the same end use (all televisions); are sold to the same customer group (junior miss clothing); or fall within a given price range (budget womens wear) |
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Term
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Definition
| the simulataneous management of price, shelf space merchandising strategy, promotional efforts, and other elements of the retail mix within the merchandise category based on the firms goals, the changing environment and consumer behavior |
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Term
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Definition
| the number of different merchandise lines that the retailer stocks in the store |
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Term
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Definition
| the number of merchandise brands that are found in a merchandise line |
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Term
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Definition
| the number of merchandise brands that are found in a merchandise line |
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Term
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Definition
| occurs when retailers have their own products competiting with the manufacturers products for shelf sepace and control over display location |
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Term
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Definition
| the average number of stock-keeping units within each brand of the merchandise line |
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Term
| Consignment aka pay for scan |
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Definition
| when the vendor retains the ownership of the goods and usually establishes the selling price; it is paid only when goods are sold |
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Term
| Pay from Scan aka consignment |
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Definition
| when the vendor retains the ownership of the goods and usually establishes the selling price; it is paid only when goods are sold |
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Term
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Definition
| allows the retailer extra or interest-free days before the period of payment begins |
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Term
| Vendor-Profitability Analysis Statement |
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Definition
| a tool used to evaluate vendors and shows all purchases made the prior year, the discount granted, the transportation charges paid, the original markup, markdowns, and finally the season ending gross margin on the vendors merchandise |
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Term
| Confidential Vendor Analysis |
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Definition
| identical to the vendor profitability analysis but also provides a three year financial summary as well as the names, titles, and negotiating points of all the vendors sales staff |
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Term
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Definition
| the process of finding mutually satisfying solutions when the retail buyer and vendor have conflicting objectives |
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Term
| Trade Discount aka functional discount |
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Definition
| a form of compensation that the buyer may receive for performing certain wholesaling or retailing services |
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Term
| Functional Discount aka trade discount |
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Definition
| a form of compensation that the buyer may receive for performing certain wholesaling or retailing services |
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Term
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Definition
| a price reduction offered as an inducement to purchase large quantities of merchandise |
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Term
| Noncumulative Quantity Discount |
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Definition
| a dicount based on a single purchase |
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Term
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Definition
| also known as shoplifting and occurs when customers or individuals disguised as customers steal merchandise from the retailers store |
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Term
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Definition
| when employees of the retailer steal merchandise where they work |
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Term
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Definition
| represents merchandise that cannot be accounted for due to theft, loss, or damage |
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Term
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Definition
| occurs when an employee of one of the retailers vendors steals merchandise as it is delievered to the retailer |
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Term
| Free on Board (FOB) Factory |
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Definition
| a method of charging for transportation where the buyer assumes title to the goods at the factory and pays all transportation costs from the vendor's factory |
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Term
| Free on Board (FOB) Shipping Point |
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Definition
| a method of charging for transportation in which the vendor pays for transportation to a local shipping point where the buyer assumes title and then pays all further transportation costs |
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Term
| Free on Board (FOB) Destination |
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Definition
| a method of charging for transportation in which the vendor pays for all transportation costs and the buyer takes title on delivery |
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Term
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Definition
| allows the retailer to pay the invoice in advance of the end of cash discount period and earn an extra discount |
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Term
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Definition
| payment system that merely allows a retailer extra or free days before the period of payment begins |
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Term
| End of Month (EOM) Dating |
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Definition
| allows the retailer to take a cash discount and the full payment period to begin on the first day of the following month instead of on the invoice date |
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Term
| Middle of Month ( MOM) Dating |
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Definition
| allows the retailer to take a cash discount and the full payment period to begin on the middle of the month |
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Term
| Receipt of Goods (ROG) Dating |
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Definition
| allows the retailer to take a cash discount and the full payment period to begin when the goods are recieved by the retailer |
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Term
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Definition
| a discount offered to teh retailer for teh prompt payment of bills |
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Term
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Definition
| a discount provided to retailers if they purchase and take delievery of merchandise in the off season |
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Term
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Definition
| a discount provided for the retailer performing an advertising or promotional service for the manufacturer |
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Term
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Definition
| a discount whereby merchandise is fofered in lieu of price concessions |
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Term
| Cumulative-Quantity Discount |
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Definition
| a discount based on the total amount purchased over a period of time |
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