Using Exercise 8.5 problem #3, you will create a six-month merchandising plan for last year. Once complete you will create a plan for this year, you will create a six-month merchandising plan. Your sales plan should account for the following concerns:
- Plan for a 12 percent increase in total season sales over the last year.
- Maintain the same percentage of sales by month.
- Maintain the same BOM Stock-to-Sales Ratio.
- Maintain the same percentage of seasonal markdowns, with an overall markdown percentage of 5.5 percent.
- Use July EOM Stock Dollars of $137,122.
- Calculate average stock and turnover plan.
Remember to begin all planning for your dollar sales plan by the month. In order for your assignment to be considered complete, make sure that you fill in the plan rows for Sales, BOM stock, EOM stock, Markd
owns, Retail, and Cost Purchases by Month.
Figure C-5
3. See answers on the completed six-month merchandise plan (Figure C-5) for answers to Exercise 8.5 #3. Planned Purchases at Cost BOM (a) Sales (c) Stock February $31,164 $118,423 March 35,616 149,587 April 44,520 155,820 May 38,955 140,238 June 36,729 135,897 July 35,616 138,902 (f) Turnover for Season = 1.6 (b) Markdowns $2,056 1,745 1,914 1,870 1,983 2,671 EOM (d) Stock $149,587 155,820 140,238 135,897 138,902 124,359 Planned (e) Purchases at Retail $64,384 43,594 30,852 36,485 41,717 23,743 31,870 21,579 15,272 18,060 20,650 11,753 Six-Month Dollar Merchandising Plan TY-PLAN ACTUAL Department Name: LY-LAST YEAR Average Stock Turnover Rate Overall Markdown % Workroom Expel n/a LY-LAST YEAR TY-PLAN ACTUAL Markup % Cost % n/a n/a Spring February March April May June July Season Total 100% Monthly % of Sales SALES Last Year Plan BOM Stock Last Year Plan Last Year EOM STOCK EOS stock is EOM July Plan Markdowns Last Year Monthly % Plan Retail Purchases Last Year Plan Cost Purchases Last Year Plan Stock to Sales Last Year Plan SIX-MONTH MERCHANDISING PLAN Last Year | Actual Plan 50.50% 5.50% Department Name: Department Number: % initial markup % markdowns % alteration expense % cash discount % gross margin % operating expense % net profit season turnover average stock GMROI Merchandise Manager: Buyer: 1.62 $137,604 Period: February March April May SEASON TOTALS June July SALES $31,164 $35,616 $44,520 $38,955 $36,729 $35,616 $222,600 14.00% 16.00% 20.00% 17.50% 16.50% 16.00% EOM STOCK $149,587 $155,820 $140,238 $135,897 $138,902 $124,359 $844,804 MARKDOWNS $2,056 $1,745 $1,914 $1,870 $1,983 $2,671 $12,240 SPRING LY Sales PL Sales Revised Actual | % Change % of LY Sales % of PL Sales LY EOM Stock PL EOM Stock Revised Actual LY Markdowns PL Markdowns Revised | Actual % Change % of LY Markdowns % of PL Markdowns LY BOM Stock PL BOM Stock Revised Actual LY Stock/Sales Ratio PL Stock/Sales Ratio 1 LY Purchases @ Retail PL Purchases @ Retail Revised Actual LY Purchases @ Cost PL Purchases @ Cost Revised Actual 16.80% 14.26% 15.64% 15.28% 16.20% 21.82% BOM STOCK $118,423 $149,587 $155,820 $140,238 $135,897 $138,902 $838,868 3.80 4 .20 3.50 3.60 3.70 3.90 PLANNED PURCHASES AT RETAIL $64,384 $43.594 | $30,852 | $36,485 $41,717 | $23,743 PLANNED PURCHASES AT COST $31,870 $21,579 $15,272 | $18,060 $20,650 $11,753 AUTHORIZATION SIGNATURES: AUTHORIZATION DATE: 3. See answers on the completed six-month merchandise plan (Figure C-5) for answers to Exercise 8.5 #3. Planned Purchases at Cost BOM (a) Sales (c) Stock February $31,164 $118,423 March 35,616 149,587 April 44,520 155,820 May 38,955 140,238 June 36,729 135,897 July 35,616 138,902 (f) Turnover for Season = 1.6 (b) Markdowns $2,056 1,745 1,914 1,870 1,983 2,671 EOM (d) Stock $149,587 155,820 140,238 135,897 138,902 124,359 Planned (e) Purchases at Retail $64,384 43,594 30,852 36,485 41,717 23,743 31,870 21,579 15,272 18,060 20,650 11,753 Six-Month Dollar Merchandising Plan TY-PLAN ACTUAL Department Name: LY-LAST YEAR Average Stock Turnover Rate Overall Markdown % Workroom Expel n/a LY-LAST YEAR TY-PLAN ACTUAL Markup % Cost % n/a n/a Spring February March April May June July Season Total 100% Monthly % of Sales SALES Last Year Plan BOM Stock Last Year Plan Last Year EOM STOCK EOS stock is EOM July Plan Markdowns Last Year Monthly % Plan Retail Purchases Last Year Plan Cost Purchases Last Year Plan Stock to Sales Last Year Plan SIX-MONTH MERCHANDISING PLAN Last Year | Actual Plan 50.50% 5.50% Department Name: Department Number: % initial markup % markdowns % alteration expense % cash discount % gross margin % operating expense % net profit season turnover average stock GMROI Merchandise Manager: Buyer: 1.62 $137,604 Period: February March April May SEASON TOTALS June July SALES $31,164 $35,616 $44,520 $38,955 $36,729 $35,616 $222,600 14.00% 16.00% 20.00% 17.50% 16.50% 16.00% EOM STOCK $149,587 $155,820 $140,238 $135,897 $138,902 $124,359 $844,804 MARKDOWNS $2,056 $1,745 $1,914 $1,870 $1,983 $2,671 $12,240 SPRING LY Sales PL Sales Revised Actual | % Change % of LY Sales % of PL Sales LY EOM Stock PL EOM Stock Revised Actual LY Markdowns PL Markdowns Revised | Actual % Change % of LY Markdowns % of PL Markdowns LY BOM Stock PL BOM Stock Revised Actual LY Stock/Sales Ratio PL Stock/Sales Ratio 1 LY Purchases @ Retail PL Purchases @ Retail Revised Actual LY Purchases @ Cost PL Purchases @ Cost Revised Actual 16.80% 14.26% 15.64% 15.28% 16.20% 21.82% BOM STOCK $118,423 $149,587 $155,820 $140,238 $135,897 $138,902 $838,868 3.80 4 .20 3.50 3.60 3.70 3.90 PLANNED PURCHASES AT RETAIL $64,384 $43.594 | $30,852 | $36,485 $41,717 | $23,743 PLANNED PURCHASES AT COST $31,870 $21,579 $15,272 | $18,060 $20,650 $11,753 AUTHORIZATION SIGNATURES: AUTHORIZATION DATE
