A Supermarket Assigns Shelf Space on the Basis of Sales

question 24

Multiple Choice

A supermarket assigns shelf space on the basis of sales volume.For example,a brand with twice the sales volume will be assigned twice the shelf facings of the slower-selling brand.This retailer determines space needs by ________.

• A) the sales-productivity ratio
• B) the model stock approach
• C) market segment product groupings
• D) the law of diminishing returns

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Definitions:

R-chart

A control chart used for monitoring the range of variability within a process.

Defect Rate

The percentage of produced items within a specific period that fail to meet quality standards or are faulty.

Control Limits

Statistical boundaries within a control chart that signal when a process is out of control and corrective action may be needed.

P-bar

The average proportion of units in a sample that exhibit a particular characteristic, used in quality control processes.