AM 270 week 12 notes
AM 270 week 12 notes AM 270
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This 2 page Class Notes was uploaded by luke koppa on Friday April 15, 2016. The Class Notes belongs to AM 270 at Colorado State University taught by Ruoh-Nan Yan in Winter 2016. Since its upload, it has received 29 views. For similar materials see Merchandising processes in General at Colorado State University.
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Date Created: 04/15/16
AM 270 Week 12 Chapter 8 Merchandise Assortment Factors to consider for assortment planning o $$$ o Line Plan Summary o Customer service level In regard to having products for which customers are looking Stock situation: instock vs. stockout o Line presentation Color variety Measurable Assortment Dimensions o Assortment factor Dimensions that define characteristics of a product Referred to as an “element” in the Line Plan Summary o Stock Keeping Unit (SKU) Unique piece of merchandise Defined by assortment factors/elements Most frequent reason for stockout: Size Other factors (color, details) you can compromise on o Assortment Breadth # of product lines carried # of categories available o Assortment depth # of items within each product line # of SKUS within each category o SKU vs. Assortment Depth More SKUS, more assortment depth More customers have to choose from More difficult to keep all unique pieces of merchandise in stock o More likely to have stockouts o Assortment Volume Total number of units in an assortment Merchandise Budget / average retail price of the category Integration of assortment dimensions into assortment plans o Assortment distribution Percentage allocation within each assortment factor Estimate based on rate of sale How fast each style/size/color sells in an assortment o Volume per assortment factor # of units per assortment factor (ex: volume per style) (Assortment volume) x (assortment distribution % of assortment factor) o Volume per SKU # of units for each SKU in an assortment # units per style x color% x size % Example: see handout If the style has 90 units, red constitutes 70%, size small constitutes 10% o 90 x .7 x .1 = 6.3 = 6
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