Question
1. A buyer had an inventory of $45,000 on June 1 and a planned EOM STOCK of $51,000. Planned sales for the department were $39,000
1. A buyer had an inventory of $45,000 on June 1 and a planned EOM STOCK of $51,000. Planned sales for the department were $39,000 and planned markdowns for THE MONTH were $3200. As of June 1, the buyer had merchandise onorder of $10,000 at retail to be delivered during the month. Planned initial mark up was 48%. Calculate the buyers OTB at COST as of June 1.
2. Why is it important to hold back some OPEN to buy dollars?
New lines or items may appear that the buyer will want to purchase
Reorders may be needed to FILL IN staple stock or replace fast selling items
SPECIAL PROMOTIONS from vendors may become available
All of the above
3. Planned sales + planned markdowns + planned ending stock-stock on hand-orders placed for delivery during the period, determines the:
Gross Margin
Open to buy
Stock turnover
4. Given THE FOLLOWING figures, determine the OTB as of October 10:
Retail STOCK on hand, October 10 - $22,000
merchandise on Order - $6,200
Planned BOM stock - November 1 - $24,000
Planned sales for October - $9,500
Actual sales as of October 10 - $3,500
Planned markdowns for October - $380
Actual markdowns as of October 10 - $200
5. If the buyer does not have sufficient OTB to make a desired purchase, which of the following ACTIONS would increase the buyer's OTB?
Increased planned markdowns
Return merchandise to vendor
CANCEL outstanding orders
All of the above
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