MAR3231 Chapter 12 - Managing
Merchandise Assortments Exam Questions
and Answers with Verified Solutions | Latest
Updated 2026
merchandise management the process by which a retailer attempts
to offer the right quantity of the right
merchandise in the right place at the right
time and meet the company's financial
goals
merchandise group highest classification level of the buying
organization
department the second level in the merchandise
classification scheme
classification the third level for categorizing
merchandise and organizing
merchandise management activities
categories the fourth level in the merchandise
classification scheme
stock-keeping unit (SKU) the smallest unit available for inventory
control
, merchandise category an assortment of items that customers
see as substitutes for one another
category management one buyer or category manager who
oversees all merchandising activities for
the entire category
category captain a vendor that works with a retailer to
develop a better understanding of
customer behavior, create assortments
that satisfy consumer needs, and improve
the profitability of the merchandise
category
GMROI (def'n) gross margin return on inventory
investment
GMROI (formula) = (gross margin %) x (sales-to-stock ratio)
= [(gross margin)/(net sales)] x [(net
sales)/(avg inventory at cost)]
= (gross margin) / (avg inventory at cost)
merchandise planning process forecast category sales
-> develop an assortment plan
-> determine appropriate inventory level
and product availability
-> develop a plan for managing inventory
-> allocate merchandise for stores
-> buy merchandise
-> monitor and evaluate performance
and make adjustments
Merchandise Assortments Exam Questions
and Answers with Verified Solutions | Latest
Updated 2026
merchandise management the process by which a retailer attempts
to offer the right quantity of the right
merchandise in the right place at the right
time and meet the company's financial
goals
merchandise group highest classification level of the buying
organization
department the second level in the merchandise
classification scheme
classification the third level for categorizing
merchandise and organizing
merchandise management activities
categories the fourth level in the merchandise
classification scheme
stock-keeping unit (SKU) the smallest unit available for inventory
control
, merchandise category an assortment of items that customers
see as substitutes for one another
category management one buyer or category manager who
oversees all merchandising activities for
the entire category
category captain a vendor that works with a retailer to
develop a better understanding of
customer behavior, create assortments
that satisfy consumer needs, and improve
the profitability of the merchandise
category
GMROI (def'n) gross margin return on inventory
investment
GMROI (formula) = (gross margin %) x (sales-to-stock ratio)
= [(gross margin)/(net sales)] x [(net
sales)/(avg inventory at cost)]
= (gross margin) / (avg inventory at cost)
merchandise planning process forecast category sales
-> develop an assortment plan
-> determine appropriate inventory level
and product availability
-> develop a plan for managing inventory
-> allocate merchandise for stores
-> buy merchandise
-> monitor and evaluate performance
and make adjustments
