Work Experience Activities
Merchandising and Inventory Management Seminar
Complete and submit the following Work Experience Activities for your Work Experience Kit.
, all activities must be completed using this electronic file, then printed out in black and white and submitted. This is a “Read Only” file and must be saved as a separate document before you begin. See the ‘Read Me’ file for “Save As” instructions.
Refer to the following guidelines when completing all activities.
• Use complete sentences to answer all activity questions.
• Eliminate all spelling, grammatical, and typographical errors.
• Include all appropriate back up materials to substantiate your work.
• Make sure all activities are computer generated or in typewritten form.
• Make sure all required activities are included in your Work Experience Kit.
• Make sure your Inventory Checklist and Sign Off Sheet are included in your Kit.
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Work Experience Activities
Merchandising and Inventory Management Seminar
Directions : Find out how your golf shop manager creates an open-tobuy budget for men’s shirts, in light of the OTB method used in the book. If the shop manager does not develop OTB budgets for each merchandise classification, find out what other method is used to manage this aspect of planning.
Discuss
1. What are two major factors the golf shop manager considers in forecasting annual sales for men’s shirts (e.g., what the competition is doing, past sales performance, product trends), and why are these factors important?
2 How are sales for this classification distributed over the year or the season, and why?
3. What is the projected turnover rate for men’s shirts and how did the golf shop manager arrive at this rate?
4. What percentage of the OTB budget for men’s shirts is left uncommitted and why did the manager decide on this percentage?
5. Choose one month and obtain the following information about the classification: a) End of month inventory value at cost b) Beginning-of-month inventory value at cost c) Forecasted COGS d) Merchandise on order that month
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Work Experience Activities
Merchandising and Inventory Management Seminar
Using these figures, calculate the open-to-buy for men's shirts for the month.
OTB Formula Your Calculation
End-of-month inventory at cost
+ Forecasted cost of goods sold
– Beginning-of-month inventory at cost
= Planned OTB at cost
– Merchandise on order that month
= Actual OTB at cost
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Work Experience Activities
Merchandising and Inventory Management Seminar
Directions : Find out how your golf shop manager breaks down the merchandise mix to reflect the facility’s image and customers’ needs and preferences. In addition, learn what information sources the manager finds most helpful in identifying emerging product trends.
1. Ask the golf shop manager what percentage of the shop’s overall merchandise mix each of the following classifications accounts for: a) Clubs b) Men’s apparel c) Women’s apparel d) Junior apparel e) Balls f) Accessories (gloves, socks, headwear, etc.) g) Shoes
2. Describe how that breakdown reflects the facility’s image and customers’ needs and preferences.
3. What one major product trend last year was the shop manager able to recognize in time and make a profit? How did the manager identify the trend in a timely manner?
4. Take one classification and describe the list of products, vendors, price points, colors, sizes, etc., that make up the merchandise assortment for that classification.
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Work Experience Activities
Merchandising and Inventory Management Seminar
Directions : Interview the golf shop manager about the shop’s overall pricing strategy. Include the target markup percentage, factors that affect when markdowns are taken, and exit strategies used. Address the following questions:
1. What is the shop’s overall target markup percentage, and how did the golf shop manager arrive at this number (i.e., what factors were influential in determining the target markup)?
2. What are three things the golf shop manager does to achieve the targeted markup?
3. How does the shop manager decide when to take a markdown? For example, is a standard time frame followed, or is the decisi on based on each product’s turnover?
4. Which exit strategies does the golf shop manager use to move excess inventory out of the shop at the end of the season or the year and why?
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Work Experience Activities
Merchandising and Inventory Management Seminar
Directions: Find out how often the golf shop manager tracks performance indicators, such as inventory turnover, merchandise dollars per round, cost of goods sold as a percentage of sales, etc.
1. How often does the shop manager track each of the following performance indicators (i.e., monthly, weekly, daily)? If any of the indicators are not tracked regularly, explain why. a) Gross margin as a percentage of sales b) Cost of goods sold as a percentage of sales c) Inventory turnover d) Merchandise dollars per round e) Gross margin return on investment
2. How often does the golf shop take a physical inventory, and how is it done?
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Work Experience Activities
Merchandising and Inventory Management Seminar
Directions : Evaluate your golf shop’s floor plan and displays by completing the worksheet below. Consult the golf shop manager, if necessary.
1. Name the shop’s departments (e.g., menswear, womenswear, equipment, etc.), and state whether products are grouped by vendor or by product collections.
2. Describe the shop’s destination products and the area where they are displayed.
3. Does the shop normally use flexible fixtures (e.g., slatwall)? If so, describe two of these fixtures and how often they are moved around the shop.
4. How often does the shop purchase/obtain new props to keep displays new and exciting for customers?
5. Describe two examples of displays that highlight product relationships and encourage multiple sales. (For example, are belts placed near pants?)
6. Where is the counter area located, and which products are displayed there?
7. Describe three examples of how the shop’s signs follow signage guidelines.
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