RETHW6 - Justify your answer. 5. A buyer has received a...

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Sarah Neff A35710843 RET261 – Section 1 Homework #6 Chapter 12: #2,4,5,8 2. How and why would you expect variety and assortment to differ between traditional bricks-and-mortar store and its Internet counterpart? 4. Assume you are the grocery buyer for canned fruits and vegetables at a five-store supermarket chain. Del Monte has told you and your boss that it would be responsible for making all inventory decisions for those merchandise categories. It would determine how much to order and when shipments should be made. It promises 10% increase in gross margin dollars in the coming year. Would you take Del Monte up on its offer?
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Unformatted text preview: Justify your answer. 5. A buyer has received a number of customer complaints that he has been out of stock on a certain category of merchandise. The buyer subsequently decides to increase this category’s product availability from 80% to 90%. What will be the impact on backup stock and inventory turnover? Will your answer be the same if the buyer is implementing an efficient supply chain inventory system? 8. Calculate the GMROI and the inventory turnover given annual sales of $20,000, average inventory (at cost) of $4,000 and a gross margin of 45%. GMROI : Inventory Turnover : .45 = 1.13 (1-1.13)* 4,000...
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This note was uploaded on 04/02/2008 for the course RET 261 taught by Professor Claire during the Spring '08 term at Michigan State University.

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