Standards

Updated: 07/12/06

MKT 122 – Buying & Merchandise Management                                                                                                                

Course Description

Introduces the fundamental principles of buying, merchandising, and accounting for products and services. Topics include: assortment planning; locating resources; ordering merchandise; just-in-time or quick response inventory control; pricing for profit; and financial statements, ratios, and accounting vocabulary, principles of merchandising, traffic patterns, basic stock and inventory, inventory control, mark-ups and mark-downs, and types of discounts.

 

Competency Areas

Hours

Assortment Planning

Class

5

Locating Resources

D. Lab

0

Ordering Merchandise

P. Lab/O.B.I.

0

Just-in-Time or Quick Response Inventory Control

Credit

5

Pricing for Profit

 

 

Financial Statements, Ratios, and Accounting Vocabulary

 

 

Principles of Merchandising

 

 

Traffic Patterns

 

 

Basic Stock and Inventory

 

 

Inventory Control

 

 

Mark-Ups and Mark-Downs

 

 

Types of Discounts

 

 


Prerequisite:

Program admission level math achievement

Corequisite:

 

 

Course Guide

Competency

After completing this section, the student will:

Hours

Class

D.Lab

P.Lab/

O.B.I.

Assortment Planning

5

 

 

The Buyers Role

Explain the role of the buyer in today’s market

 

 

 

 

Describe the duties of a buyer in a chain store, department-store, and other operations (catalog, online, click and mortar).

 

 

 

Principles of merchandising

Determine the ingredients in the proper merchandise blend

 

 

 

 

Determine the factors to consider when developing the merchandise blend

 

 

 

Basic stock and inventory

Analyze model stock

 

 

 

 

Describe factors affecting assortment planning decisions

 

 

 

Locating Resources

 

3

 

 

Domestic and Foreign Markets

Interpret the importance of locating resources in domestic and foreign markets

 

 

 

 

Identify factors affecting selection of resources

 

 

 

Ordering Merchandise

 

8

 

 

Negotiation

Identify negotiation techniques used with vendors

 

 

 

 

Identify terms to be negotiated when placing an order

 

 

 

 

Define ordering responsibilities for buyers and assistant buyers

 

 

 

Just-in-time quick response

Explain the value of just-in-time quick response

 

 

 

 

Analyze RFID and other technology used to track merchandise

 

 

 

 

Identify the components of placing an order

 

 

 

Financial Statements, Ratios and Accounting Vocabulary

 

12

 

 

 

Detail the elements of a six-month merchandising plan

 

 

 

 

Compute monthly sales for the season

 

 

 

 

Compute average stock for the season

 

 

 

 

Define the basic stock method and calculate the beginning of the month stock

 

 

 

 

Computer the BOM stock

 

 

 

 

Define stock turnover ratio and calculate

 

 

 

 

Complete a six-month merchandising plan using the basic stock method and the stock sales ratio method

 

 

 

Pricing for Profit

Explain terms that are used in pricing

7

 

 

 

Use basic mark-up formulas in pricing

 

 

 

 

Calculate the initial markup percentage of cost and retail prices

 

 

 

Reductions

Calculate basic mark-downs

 

 

 

 

Describe various pricing policies

 

 

 

 

Cite legal aspects of pricing

 

 

 

Types of Discounts

List and calculate different types of discounts

5

 

 

 

Explain the use and importance of discounts in the resellers market

 

 

 

Inventory Control

List the methods of inventory control

 

 

 

 

Compare inventory control methods

5

 

 

 

Discuss inventory security methods to prevent shoplifting and pilferage

 

 

 

Traffic Patterns

Identify basic store layouts

5

 

 

 

Analyze the use of technology in tracking traffic patterns in retails operations and on web-sites.

 

 

 

 

Suggested Resources

 

Books

Diamond & Pintel, Retail Buying Prentice Hall 0131180289

Kunz, Merchandising: Theory, Principles, and Practices Fairchild Publishing

Levy & Weitz, Retailing Management McGraw-Hill Irwin Publishing

Dunne, Lusch, & Griffith, Retailing Southwestern Publishing