THE ASSORTMENT PLANNING

PROCESS

By: Elaiza Kathrize Ramos

TOPICS

Variety- the number of different merchandising categories within a store or a department.

Assortment- the number of stock keeping unit (SKU) within a category

Product Availability- referred to as the level of

support or service level

- defines the percentage of demand for a particular SKU that is satisfied.

Trade offs between Variety, Assortment, and Product

Availability- target market toward which

a retailer plans to commit its resources.

- nature of retail offering that the retailers plans to use to satisfy the target markets need.

- bases upon which the retailer will attempt to build a sustainable competitive advantage.

Determining Variety and Assortment

1. Profitability of Merchandise Mix2. Corporate Philosophy toward the Assortment3. Physical Characteristics of the Store and Layout of the Internet4. Complementary Merchandise

Determining Product Availability

Cycle Stock or Base Stock

- inventory that results from the replenishment process and is required to

meet demand when the retailer can predict demand and replenishment time perfectly.

Determining Product Availability

Backup Stock/Safety Stock/ Buffer Stock

- safety cushion for the cycle stock so they won’t run out before the next order arrives.

Internet Assortment Planning Issues

WHAT SELLS OVER THE INTERNET?

- Who will buy it?- Who is your competition?- Will it look good?- Does it ship well?

The Assortment Plan- is a process whereby products

are selected and planned to maximize sales and profit for a specified period of time.

Thank You!