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AM 270 week 12 notes

by: luke koppa

AM 270 week 12 notes AM 270

Marketplace > Colorado State University > General > AM 270 > AM 270 week 12 notes
luke koppa
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About this Document

notes covering the beginning of Chapter 8 Merchandise Assortment
Merchandising processes
Ruoh-Nan Yan
Class Notes
AM 270, merchandising, Merchandise assortment
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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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