S2, S1: Retail Buyer and Strategic Planning Trivia

What strategic approach should a retail buyer take when selecting merchandise for a store with a diverse customer base?

• Focus solely on high-end products

• Analyze customer demographics and preferences to diversify stock

• Purchase only the most popular items from last year

• Stock only products with the highest profit margins

Which of the following best describes the concept of lead time in retail?

• The time taken to train new employees

• The time between placing an order and receiving the goods

• The time taken to sell all stock

• The time spent on customer service

How can a retail buyer effectively use forecasting to manage inventory levels?

• By guessing future trends based on intuition

• By analyzing historical sales data and market trends

• By purchasing the same amount of stock each month

• By focusing only on seasonal products

A retail buyer is tasked with reducing excess costs due to overstocking. What strategic action should they take?

• Increase the variety of products ordered

• Implement a just-in-time inventory system

• Order larger quantities to get bulk discounts

• Focus on stocking only perishable items

What is the primary role of inventory control in a retail environment?

• To maximize the number of products on display

• To ensure the right amount of stock is available to meet demand

• To increase the price of products

• To reduce the number of employees needed

Why is it important for a retail buyer to consider lead time when placing orders?

• To ensure products are always on sale

• To avoid stockouts and ensure timely availability of products

• To reduce the cost of shipping

• To increase the variety of products offered

A retail buyer notices a shift in consumer preference towards sustainable products. How should they adjust their purchasing strategy?

• Ignore the trend and continue with the usual stock

• Increase the purchase of sustainable products to align with consumer demand

• Reduce the purchase of all products to save costs

• Only purchase products that are on sale

What is a potential consequence of not using effective inventory control systems in a retail store?

• Increased customer satisfaction

• Excess costs due to overstocking or stockouts

• Improved employee morale

• Faster checkout times

How can a retail buyer ensure that the right products are available at the right time?

• By randomly selecting products

• By planning and analyzing customer demand trends

• By purchasing only discounted items

• By focusing solely on high-end products

What is the relationship between lead time and inventory control?

• Lead time has no impact on inventory control

• Longer lead times require more careful inventory control to avoid stockouts

• Shorter lead times always result in overstocking

• Lead time only affects the cost of products