Six-Month Merchandise Plan
Formulas and Calculations
Purchasing Situations
Types of Buying
Vocabulary
100
All other figures on the merchandise plan are calculated based on this figure
What is the planned sales figure?
100
Planned Sales: LY Sales- $60,000 15% increase
What is $69,000?
100
a simple reorder
What is a straight rebuy?
100
Where a business or organization is responsible for all procurements
What is centralized buying?
100
how you calculate the BOM figure
What is EOM Stock Figure?
200
Employee discounts, markdowns, shortages
What is planned reductions?
200
BOM stock/sales for the month
What is stock-to-sales ratio?
200
ex. Otis Spunkmeyer
What is straight rebuy?
200
A tool used in retail merchandise designed to assist retailers in managing and replenishing their most significant asset
What is open-to-buy?
200
a deduction from the usual cost of something
What is a discount?
300
retail dollar purchases figures a firm needs to achieve its sales and inventory projections
What is planned purchases?
300
Planned sales+EOM+reductions-next month's BOM
What is planned purchases?
300
purchases that have never or rarely been made before
What is new-task purchase?
300
Retail decisions are made at lower levels in a business or organization
What is decentralized buying?
300
requests from customers for items not carried in the store
What is a want slip?
400
The amount of money left for buying goods
What is open-to-buy?
400
TY Planned Sales – LY Actual sales/LY Actual Sales
What is planned BOM stock?
400
includes a re-evaluation process
What is a modified rebuy?
400
an arrangement where goods are left in the possession of another party to sell
What is consignment buying?
400
this situation occurs when companies post what they want to buy and suppliers bid for the contract
What is reverse auction?
500
The net worth of inventory you have on the first day of the month
What is planned BOM stock?
500
Planned Purchases at Retail × (100% – Planned Markup %)
What is planned purchases at cost?
500
ex. the Emporium and Annie's Frozen Yogurt
What is a new-task purchase?
500
this is when the supplier agrees to take back any unsold goods by a certain pre-established date
What is memorandum buying?
500
this person is responsible for buying or approving the acquisition of goods and services
What is purchasing manager?
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