Which of the Following Statements Does Not Describe the Trade-Offs

question 45

Multiple Choice

Which of the following statements does not describe the trade-offs that buyers should consider for merchandise assortment planning?

• A) Increasing sales by offering more breadth and depth can potentially reduce inventory turnover.
• B) Increasing sales by offering more breadth and depth can potentially reduce GMROI by having more stock-keeping units (SKUs).
• C) Increasing breadth and depth can increase the need to put more merchandise on sale and thus negatively affect the gross margin.
• D) SKU rationalization programs can help in increasing inventory turnover without reducing sales.
• E) The more SKUs offered, greater the chance of breaking sizes-running out of a specific size SKU.

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Definitions:

True Probabilities

The actual likelihood of all possible outcomes of a random event, often contrasted with estimated probabilities based on models or historical data.

Rates Of Return

The gains from an investment over a specific period, often measured as a percentage of the investment's initial cost. This represents the profitability of an investment.

Recent Experience

This term refers to the latest available data or outcomes from events, often used to analyze current trends or performance.

Prior Beliefs

The pre-existing beliefs or expectations an individual holds before receiving new information or evidence.