According to an Independent Study, Zara Books Some 85 Percent

question 16

Multiple Choice

According to an independent study, Zara books some 85 percent of its products at full price compared to the industry average markdown ratio of 50 percent. This is made possible by:

• A) keeping a major part of the production processes under direct proprietary control.
• B) coordinating the outbound shipments of all Inditex brands with return legs loaded with return materials and half-finished items.
• C) applying data analytics to purchase trends.
• D) the practice of having limited production runs of its designs.
• E) leveraging contract manufacturers to produce only staple items with longer shelf-lives, which account for one-eighth of dollar volume.

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Definitions:

Thermocouples

Sensing devices used to measure temperature, consisting of two dissimilar metal wires joined at one end, producing a voltage proportional to temperature difference.

Reed Relay

A type of relay that uses a pair of magnetic reeds as the switching mechanism, often enclosed in a glass tube to protect against external magnetic fields and contaminants.

Permanent Magnet

A material that maintains a constant magnetic field without the need for electrical power.

Resistance Temperature Detector

A sensor used to measure temperature by correlating the resistance of the RTD element with temperature.