1) Fashion merchandise:

a. is relatively easy to forecast demand for.

b. does not require end-of-season sales.

c. requires merchandise planning systems that perform continuous replenishment.

d. refers to categories that are in continuous demand over an extended time period.

e. offers less flexibility in correcting forecasting errors.

2) Which of the following is true of forecasting for fashion merchandise categories?

a. It is likely to take inputs from fashion trend services.

b. It is independent of the sales figures from the previous year.

c. It is constant across the retail channels over which a product is being offered.

d. Vendors are not likely to be knowledgeable about market trends.

e. The forecast made from social media mining is invariably incorrect.

3) When the backup stock is large, _____.

a. the product availability decreases

b. the retailer is likely to lose sales

c. inventory management work is minimized

d. the assortment and variety increases

e. the GMROI increases

4) Selecting vendors as category captains:

a. adds a layer of complexity to the merchandise management tasks.

b. prevents price fixing.

c. enables application of knowledge got from a vendor’s experience with other retailers.

d. splits profits of the retailer and results in financial loss.

e. promotes smaller brands by giving them increased shelf space.