RMG 200 Chapter Notes -Inventory Turnover, Inventory Control, Markdown

• School: Ryerson University
• Department: Retail Management
• Course: RMG 200
• Professor: Brent Barr

Document Summary

Retailers use two distinctive types of buying systems: a staple merchandise buying system for basics, a merchandise budget for fashion merchandise. Staple merchandise buying systems are used for merchandise that follows a predictable order receipt order cycle. Staple merchandise buying systems contain a number of program modules that show how much to order and when. Provides information about current sales rate or sales velocity, inventory availability, the amount on order, sales forecast, and most important, the quantity to order for each sku. The descriptive and record keeping function of an inventory control system; includes the: Item description: stock number, number of units on hand and on order, sales for the previous periods. Planned inventory turnover is based on overall financial goals and drives the inventory management system. The appropriate planned level of product availability for staple merchandise is relatively easy to determine based on past orders.