Question

Stock and Sales Planning by Classification Sometimes when planning assortments, the buyer will focus on the sales generated instead of the stock. In the following problems, use the same steps you just went through, but this time keep in mind the buyer is looking at sales and how many pieces he or she should buy instead of how the stock should be developed. 4. The woman's lingerie buyer is planning the fall season. Based on historical data, the buyer calculates that 15% of the department sales will be generated from new high-fashion cotton boxers. Ro ers are classified as #15 on the sales and classifications reports. De partment sales are planned at $540,000. The following are the buyer's anticipated sales plans. In this assortment there will be t price lines, one at $4.00 and one at $6.00. The $4.00 price line will generate 60% of the sales, and 40% will come from the $6.00 price line. Use the following size breakdown to determine pieces per size Small: 10% Medium: 30% Large: 40% X-large: 20%

Answer 1

Total departmental sales			5,40,000	$
Revenue expected from sale of high fashion cotton boxers						(540000*15%)			81,000	$
					Price range		(a)	4	$	6	$
					Expected sales in %			60%		40%
					Expected sales in $
					(81000*60%)		(b)	48,600	$
					(81000*40%)		(b)			32,400	$
					Total units in pieces		( c) = (b)/(a)	12,150	pcs	5,400	pcs
					Inventory Breakdown
					Small	10%	( c*10%)	1,215		540
					Medium	30%	( c*30%)	3,645		1,620
					Large	40%	( c*40%)	4,860		2,160
					X-Large	20%	( c*20%)	2,430		1,080
					Total units			12,150		5,400