Service Processing at BuyCostumes.com BuyCostumes.com is the fastest growing Internet apparel company. Since their founding in 1999 they have experienced the challenge of an annual growth of 75%. This challenge is further complicated with over 50% of their annual sales occurring in 6 weeks. Operations planning is the key to success in BuyCostumes.com's challenging and complicated business. This planning begins with a successful sales forecast that takes into account company history, economic forecasts, industry and pop culture trends. The sales forecast enables customer service and the warehouse to determine their peak season staffing needs. Purchasing, warehousing and receiving must also plan with a focus on the peak Halloween season. The business is working to lessen the impact of the Halloween peak by expanding into party supplies and holiday decorations.

When does planning for the Halloween season begin?

Multiple Choice

November

Immediately after Halloween

Planning is a monthly process

October

Planning is continuous

January

When does purchasing begin to order the Halloween inventory?

Multiple Choice

Six weeks before Halloween

Halloween inventory is ordered monthly

When management obtains funding

After making projections at the item level

Six weeks after Halloween

After the supplier's samples are approved by the Quality Manage

How is costume buying different from traditional buying?

Multiple Choice

Buying is a continuous process

Buying is 5-6 months in the future

The customers return their costumes after Halloween

Buying is 1-2 months in the future

Buying is based on movie sales

The costumes are bought on consignment

How does the warehouse use projected sales volume?

Multiple Choice

To determine peak season staffing needs

To schedule layoffs

To determine shipping hours

To schedule vacations

To determine their annual budget

To develop their long-range plan