Page 186 - DMGT550_RETAIL_MANAGEMENT

Unit 10: Inventory and Product Availability Levels

10.8 Keywords Notes

Advance Shipping: Advanced shipping notices notify the customer that an order has shipped
and when the customer can expect the shipment.

Allocation: It is a process for determining the share of each purchase order to be allocated to
individual stores. Allocation can be pre or post.
Consigned merchandise: Consigned merchandise is merchandise sold on behalf of another
company or individual, who retains title to it.
Post-allocation: It means that the allocation function is performed by the retailer’s distribution
center or central warehouse once the goods are received there.
Purchase Order Management: The purchase order management module generates orders for
merchandise to be shipped to the warehouse(s), distribution centers, and for direct delivery to
the stores.

10.9 Review Questions

1. Discuss about setting inventory and product availability levels.

2. Explain the establishing of a control system for managing inventory.
3. Discuss about allocating merchandise to stores.
4. Describe the process of analyzing merchandise management performance.
5. Discuss about developing and sourcing private level merchandise.
6. Describe about negotiating with vendors.

7. Explain about “ABC Analysis”.
8. Discuss about store allocation and replenishment.
9. Discuss about Shipping and Billing.

10. Describe about the term “Goods in Transit”.
Answers: Self Assessment

1. Merchandising
2. Management
3. Audits
4. Shipping

5. Allocation
6. Warehouse
7. Merchandise
8. Planned

9. True

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