MDSE 3510 chap 8

3 methods to plan stock:

1) weeks supply method 2) basic stock method 3) stock sales ratio method

if actual sales for last year were $270,000 and planned sales for this year are $300,000, what is the planned percent increase in sales for this year?

% sales increase= (TY sales- LY sales)/LY sales (300,000-270,000)/270,000= 11.11% increase

planned sales for august this year are $145,000. if the actual sales for the month last year were $130,000, what is this years planned percent increase in sales?

(145,000-130,000)/130,000 = 15,000/130,000 =11.54% increase

due to a reduction in the number of stores with a formalwear department, the buyer is planning a 20% reduction in sales for the department. if last years sales were $218,000, what is this years planned sales figure?

100%-20%= 80% 218,000 x .80= $174,400

determine the sales curve percents by month: feb: 10 units march: 22 units april: 32 units may: 48 units june: 66 units july: 22 units

200 total units feb: 10/200= 5% march: 22/200= 11% april: 32/200= 16% .........

actual sales in the department last year were $518,000. if the department planned a 15% increase for the year, what is the dollar amount of sales planned?

518,000 x 1.150= $595,700

this years sales totaled $90,000 for august and $96,000 for september. if the planned sales is as follows, figure the dollar sales for the remaining months of the period: august 15% september 16% october 14% november 19% december 24% january 12%

90,000 / .15= 600,000 total sales september: 96,000 october: .14 x 600,000= 84,000 november: .19 x 600,000= 114,000 december: .24 x 600,000= 144,000 january: 12 x 600,000= 72,000

the girls department had planned sales of $40,000 for the month of may. past records indicate a stock sales ratio of 1.43. what should be the planned BOM stock for may?

BOM stock: planned mo sales X ss ratio = 40,000 x 1.43 = 57,200

determine planned purchases for the month of september, given the following: sales for september $190,000 stock for septemer 1 $318,200 markdowns $16,500 stock for october 1 $304,800

PP @ retail: sales + EOM+ markdowns- BOM =190,000+ 304,800+ 16,500- 318,200 = $193,100

determine the stock sales ratio for may when BOM stock at retail is $50,000 and retail sales for the month are $35,000.

SS ratio: BOM stock at ret./ NS for month = 50,000/ 35,000 = 1.4286

a department has a planned stock turnover of 4 and planned sales of $160,000 for a six month season. plan the BOM stock for april if planned sales for april are $20,000.

a) avg stock for season: sales for season/ stock turnover for season = 160,000/ 4 = $40,000 b) avg monthly sales: sales for season/ # months in season = 160,000/6 = 26,667 c) basic stock: avg stock- avg monthly sales = 40,000- 26,667 = 13,333 d) BOM stock: sales for month+ basic stock = 20,000+ 13,333 = 33,333

determine the planned purchases for september a) at retail and b) at cost for the childrens department when the seasonal merchandise plan indicated the following planned figures: sales $75,000 markdowns 9% BOM stock $68,000 EOM stock $54,000 markup 48%

a) pp @ retail: sales+ EOM+ MD- BOM = 75,000+ 54,000+ (75,000 x .09)- 68,000 = $67,750 b) pp @ cost: pp @ retail X (100%- MU) = 67,750 X .52 = $35,230

determine planned purchases a)at retail and b)at cost for a month with the following planned figures: sales $40,000 markdowns $2,000 BOM stock $98,000 EOM stock $101,000 markup 46%

a) sales+ EOM+ MD- BOM = 40,000+ 101,000+ 2,000- 98,000 = $45,000 b) pp @ retail X (100- MU) = 45,000 x .54 = $24,300

ways a sales curve can be expressed:

as a unit of sale as a dollar figure as a percent as a ratio

a store had a BOM stock of $300,000 at retail. net sales for the month were $146,000. the EOM inventory was $350,000. what was the stock turnover for the month?

average stock: (300,000+ 350,000)/2 = 325,000 turnover: ns/ avg stock 146,000/ 325,000= .45

figure stock turnover for the six month period from february through july: net sales for the 6 month period were $88,000 BOM stock: feb 39,000 march 38,000 april 35,000 may 35,000 june 34,000 july 26,000 august 33,000

average stock: BOM + EOM/ 7 = (39+ 38+ 35+ 35+ 34+ 26+ 33)/7 = 240,000/7 =34,286 stock turnover: net sales/ average stock = 88,000/ 34,286 =2.57

figure the stock turnover at retail for a period of one month, given the following information: $32,000 BOM stock at retail, $38,000 EOM stock at retail, and $14,000 net sales for the month.

average stock: BOM + EOM/ 2 = (32,000+ 38,000)/ 2 = 35,000 stock turnover: net sales/ average stock =14,000/ 35,000 =.4 for the month

a department has a planned stock turnover of 4.2 and planned sales of $252,000 for a six month period. august sales are estimated at $38,000 and september sales at $45,000. using the basic stock method, determine the BOM stock for august and september.

avg sales: sales/ # of months = 252,000/ 6 = $42,000 avg stock: 252,000/ 4.2 = 60,000 basic stock: avg stock- avg sales = 60,000- 42,000 = 18,000 august: 18,000+ 38,000= $56,000 september: 18,000+ 45,000= $63,000

junior dresses had an opening inventory of $36,000 at retail. net sales for the period were $12,389. if the closing inventory was $37,000, what was the rate of stock turnover for the period?

avg stock: (BOM + EOM)/ # of inventories = (36,000+37,000)/2 = 36,500 turnover: NS/ avg stock = 12,389/ 36,500 = .34

what is the 6 month stock turnover based on the following figures and net sales of $450,000? BOM stock: february 60,000 march 63,000 april 75,000 may 72,000 june 68,000 july 65,000 august 75,000

avg stock: (BOM + EOM)/ # of inventories =(60+63+75+72+68+65+75)/ 7 =478,000/7 =68,286 turnover: NS/ avg stock =450,000/ 68,286 = 6.59

calculate unit turnover for the month, given the following: BOM stock 100 units EOM stock 75 units units sold during the month: 200 units

avg stock: (BOM + EOM)/ 2 = (100+ 75)/2 =87.5 turnover: = 200/ 87.5 = 2.2857 per month

determine the average stock in a department with annual sales of $1,650,000 and an annual stock turnover of 4.5.

avg stock: NS/ turnover = 1,650,000/ 4.5 = $366,667

during a six month period, a department had planned sales of $180,000 and a planned turnover of 3.2. using the basic stock method, determine the BOM stock for march if planned sales for march are $28,000.

avg stock: NS/ turnover = 180,000/ 3.2 = $56,250 basic stock: avg stock- avg mo sales = 56,260- 30,000 = 26,250 BOM stock: sales + basic stock = 28,000 + 26,250 = $54,250

for the fall season the stock turnover is expected to be 5.0, what is the weeks supply?

fall season: 6 months # of weeks in fall season: 26 weeks supply: # of weeks/ stock turnover = 26/5 = 5.2

planned sales in the seasonal back to school department for july are $32,000, and the planned stock sales ratio is 3.8. how much stock should be on hand july 1?

july 1= BOM BOM: sales X S/S = 32,000 x 3.8 = $121,600

figure the percent increase in sales for each of the following months, and determine the probable sales for june in a department that had the following sales pattern: march: LY 140,000 TY 155,000 april: LY 155,000 TY 170,000 may: LY 145,000 TY 160,000 june: LY 152,000 TY ?

march: (155,000- 140,000)/140,000= 10.71% april: (170,000-155,000)/155,000= 9.68% may: (160,000- 145,000)/145,000= 10.34% .1071+ .0968+ .1034= .3073 .3073/3= .1024 june: 10%- 10.24% 10%: 1.10 x 152,000= 167,000 10.24%: 1.1024 x 152,000= 167,565

if markdowns were $7,680 and net sales were $48,000, what what the markdown percent for the month?

md%: md/ ns = 7,680/ 48,000 = 16%

basic merchandise

merchandise that is in continual demand and is kept in stock at all times

calculate the planned june purchases at COST, given the following: june sales $175,000 reductions $20,000 BOM stock for june $250,000 BOM stock for july $150,000 markup 48%

pp @ retail: sales + EOM+ MD- BOM = 175,000+ 150,000+ 20,000- 250,000 = 95,000 pp @ cost: pp @ retail X (100%- planned MU) = 95,000 X .52 = $49,400

what is the planned stock sales ratio when BOM stock is planned at $64,500 and planned sales are $29,000?

s/s: bom/ sales = 64,500/ 29,000 = 2.22

at the beginning of september, sleepwear and robes had a retail stock of $65,000. sales for the month were $18,200. what was the stock sales ratio for september?

stock/ sales = 65,000/ 18,200 = 3.57

if net sales for the spring season are planned at $280,280 and a stock turnover of 5 times during the season is desired, how many weeks supply should be on hand at all times?

weeks supply: 26 weeks/ desired stock turnover 26/5= 5.2 weeks supply needed avg weekly sales: planned sales for the period/ # of weeks in the period = 280,280/ 26 weeks = $10,780

given annual sales of $520,000 and an annual turnover rate of 8, what inventory is needed for the first week of the year when the sales are planned at $11,000?

weeks supply: # of weeks/ turnover = 52/8 = 6.5 inv needed: pl sales X weeks supply =11,000 x 6.5 =$71,500