MERCHANDISE PLANNING AND BUYING

Part A. (40%)

  • As a buyer for XYZ retail store (name your store) you will choose a classification of merchandise that
    you will buy.
  • You will decide your store location and the type of store it will be.
  • This information will be backed up by documented valid research and trend information.
    This written portion of the project will be a minimum of three typed double space pages, in APA format.
    In it, you will cite the research material used to choose this type of store, its customer demographic and its
    location. You will also describe the reasons why you chose your specific product classification.
    Part B. (30%)
    In Part B, you will calculate your OTB, which is the amount of retail $ you can spend to stock your store. This
    OTB money will be for the Fall season of 2021, which will encompass Aug, Sep, Oct, Nov, Dec of 2021 and
    Jan of 2022.
    Using the planned figures provided you will calculate the following for your store.
    Show this work on an Excel spreadsheet in traditional OTB grid format.
  1. Open to buy for each month
  2. Average monthly sales
  3. Average monthly on order
  4. Mark down % for each month
    Employee Merchandise
    Sales Discount MD $ Shortages BOM EOM On Order
    August $220,000 2% $57,200 1.5% $440,000 $356,000 $100,900
    September $178,000 2% $37,380 1.5% $356,000 $270,000 $ 35,610
    October $135,000 2% $28,350 1.5% $270,000 $560,000 $258,075
    November $280,000 3% $72,800 1.5% $560,000 $650,000 $155,400
    December $325,000 4% $100,750 2.5% $650,000 $280,000 $ 26,875
    January $100,000 2% $26,000 1.5% $280,000 $350,000 $ 100.500
    • Your spreadsheet should be set up so that the months run across the top (from left to right) and your
    descriptions run down. There is a sample in the Term Project Module.
    • As a reminder, OTB is the amount of merchandise that needs to be purchased so that the department
    achieves its EOM inventory goal. It is calculated as:
    o Planned Sales + Planned Reductions + Planned EOM = Total Monthly Needs
    o Total Monthly Needs – Planned BOM Stock = Planned Purchases
    o Planned Purchases – Merchandise Onorder = Open to Buy
    Created in Master PDF Editor
    Page 2 of 2
    Part C. (20%)
    Using an Excel Spreadsheet:
  • You will detail your open to buy merchandise, down to the style level (not size) by month.*
  • Units in this spread sheet should yield the total OTB dollars by month and the total OTB that you
    calculated in Part B.
    *When describing your style information, please be sure you list the cost, markup (this should be 50% mark
    up at a minimum) and retail for each item. There is a sample in the Term Project Module.
    Part D. (10%)
    Solve the following:
  1. After careful analysis of the economic data from the U. S. Government, the XYZ store set a sales plan
    increase for the next years Fall season, 2022, of+ 10.3%. Based on this year’s sales plan what is the companies
    projected sales plan for the next season?
  2. In the 2020 Fall sales period the XYZ store had actual sales of $1,125,000. What is the Fall 2021
    planned increase or decrease for sales when compared to Fall 2020? Suggest reasons for the change from one
    season to the next.

Sample Solution

ACED ESSAYS