Merchandise planning and assortment planning are two important functions in retail buying and merchandising. Both are concerned with ensuring that the right products are available to customers at the right time and in the right quantity, but they differ in their scope, purpose, and decision-making focus. Merchandise planning is a broader process, whereas assortment planning is more specifically concerned with the selection and structure of products offered to customers. Merchandise planning is the systematic process of deciding what merchandise a retailer should sell, how much should be purchased, when it should be available, and what financial results are expected. It connects the retailer’s sales objectives with inventory and purchasing decisions. The merchandise planner studies historical sales, market trends, customer preferences, seasonal demand, planned promotions, and available resources. Based on this analysis, sales and inventory targets are established for a particular period. Merchandise planning also involves decisions regarding sales budgets, stock levels, markdowns, inventory turnover, gross margins, and open-to-buy budgets. Its primary objective is to achieve profitable sales while maintaining an appropriate level of inventory. Assortment planning, on the other hand, focuses on