Question
What is meant by a merchandise plan? Explain the different factors that are considered while preparing it
Answer :
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A merchandise plan is a systematic and detailed plan prepared by a retailer or merchandiser to determine what merchandise should be purchased, in what quantity, at what price, and when it should be made available for sale. It provides a framework for managing the assortment of products so that the right merchandise is available to the right customers, at the right place and at the right time. A merchandise plan helps retailers balance customer demand, sales objectives, inventory investment, and profitability. It is an important tool in buying and merchandising because it guides purchasing decisions and reduces the risks of excess inventory, shortages, and markdowns. While preparing a merchandise plan, several important factors are considered. The first factor
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