CMKG - CPCM Space Management Exam 2024

CMKG - CPCM Space Management Exam 2024 1. What is the balance formula in space management as it relates to inventory on shelf for the retailer? -Answer-Answer: Minimize days of supply and maximize stock availability. Retailers want to find the balance between minimizing days of supply while maximizing stock availability (to avoid out of stocks). 2. When determining product assortment and considering how it affects the shelf, what are the two MOST important factors that retailers need to consider? -Answer-Answer: Variety of items and shelf capacity. Retailers need to balance between variety of assortment and maximizing shelf capacity. 3. Once a new planogram is implemented by a retailer, the category management team conducts a direct comparison between the metrics for the past planogram and the new one, and then continues to make comparisons over time as new sales data is collected. What is this process called? -Answer-Answer: Post-reset tracking. It's an easy term to remember, because post-reset tracking obviously happens once the planogram is implemented. 4. Retailer X has listed a new "Brand X" on its category assortment. This brand is a value-priced brand, similar to the more expensive Brand Y brand the retailer already carries in the category. What would be the best place to shelve these two brands to maximize sales? -Answer-Answer: Retailer X should not place the brands adjacent to each other on the shelf to avoid trading down from Brand Y to the less expensive Brand X. The two brands should be placed separately from each other - perhaps based on the consumer decision tree and shelving Brand X with other value brands. 5. Which of the following statements is LEAST accurate as it relates to shelf management? - Answer-Answer: Store level sales data should not be used in the development of planograms. This is not an accurate statement - store level sales data should be used for retailers who create store-specific planograms. 6. True or false. Retailers should have strategies associated with the placement of their private label brand on the shelf, but which should vary by category. -Answer-Answer: False. Retailers need to have a consistent shelving strategy for each of their private label brands throughout the store. 7. Item A has 6 facings, holds 6 units per facing and its annual sales are 520 units per year. What are the inventory turns for Item A? -Answer-Answer: 14.4 - the formula is total units per year (520) / by (# of facings * units per facing) (36) = 14.4 inventory turns. 8. The bottom shelf of a gondola I typically deeper than other shelves which results in increased: -Answer-Answer: Shelf capacity.