MDSE 3510
Lab 12: Completing the 6-Month Merchandise Plan
Objective: Students will utilize a template previously created to complete a Six-Month Merchandise Plan by using
the information provided below as well as the knowledge gained from Chapter 8.
Procedure:
1. Open the 6-Month Merchandise Plan created from the previous lab. Today you will complete the plan with
the figures provided to you below and entering in the appropriate formulas.
2. Save a copy of the finished plan so you can submit it for this assignment and so you can submit it to your eportfolio.
Information:
- Planned Net Sales
- Expenses
- Planned Profit
- Cash Discounts
- Reductions
- Stock Turnover
Month
February
March
April
May
June
July
% Plan Sales
16%
17%
13%
18%
22%
14%
$280,000
44.9%
7.4%
1.3%
14.0%
2.9
% Plan Reductions
19%
20%
22%
17%
10%
12%
Step 1 : Enter as much of the information provided above into your 6-month plan
Step 2 : Calculate IMU% = (Expenses + Profit + Reductions - Cash Discounts) / (Sales + Reductions)
**First calculate the dollar amounts from the percentage figures given above for each metric.
Step 3 : Calculate each month’s Planned Sales dollar using the monthly % Plan Sales above
**Monthly Planned Sales = % Plan Sales X Total Net Sales$
Step 4 : Calculate each month’s Planned Reduction dollar using the monthly % Plan Reductions above
**Monthly Planned Reductions = % Plan Reductions X Net Sales$
Step 5 : Determine BOM Stock figures for each month using the Basic Stock method
(a) Basic Stock for the season = Avg Inv – Avg Sales
** NOTE: Avg Inv = Net Sales/Turn ; Avg Sales = Net Sales/6
(b) BOM Stock for each month = Planned Monthly Sales + Basic Stock for the season
Step 6 : Determine EOM Stock figures for each month
**The last month’s EOM will be the same as your Average Inventory for the season from above.
Step 7 : Determine monthly Planned Purchases at Retail and Cost
**Planned Purchases @ Retail = (Sales + EOM stock + Reductions) – BOM Stock
**Planned Purchases @ Cost = Planned Purchases @ Retail X (1-IMU%)