Page 173 - DMGT550_RETAIL_MANAGEMENT

Retail Management Anand Thakur, Lovely Professional University

Notes Unit 10: Inventory and Product Availability Levels

CONTENTS
Objectives
Introduction

10.1 Setting Inventory and Product Availability Levels
10.2 Establishing a Control System for Managing Inventory
10.3 Allocating Merchandise to Stores

10.4 Analyzing Merchandise Management Performance
10.5 Developing and Sourcing Private Level Merchandise
10.6 Negotiating with Vendors
10.7 Summary
10.8 Keywords

10.9 Review Questions
10.10 Further Readings

Objectives

After studying this unit, you will be able to:

 Explain about setting inventory and product availability levels
 Establish a control system for managing inventory
 Discuss about allocating merchandise to stores
 Describe about allocating merchandise to stores

 Discuss negotiating with vendors

Introduction

The efficiency of a retail store is based on the retailer’s ability to provide the right goods of good
quality to the consumer, in the right quantity, at the right place and at the right time. The entire
process of retailing depends on efficient inventory management. In this unit, you will learn to
plan merchandise and merchandise budget.

In the large retail store, we find a dizzying array of goods to clothe our bodies, decorate our
homes and entertain our families. All of this merchandise comes in a variety of sizes, colors,
makes and models. Bringing it all together requires the successful coordination of numerous
individuals and divisions, including buyers, warehouse employees, financial staff, store
operations, etc.
Yet, merchandising takes top priority. It doesn’t matter how efficiently the other departments
are operating. If merchandising is not firing on all cylinders, the company merchandising is not
firing on all cylinders, the company cannot succeed.
The merchandise management process allows the retail buyer to forecast with some degree of
accuracy what to purchase and when to have it delivered. This will greatly assist the company in

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