A retailer determines its space needs in a model stock approach on the basis of ________.
A) maintaining a proper assortment of merchandise
B) inventory turnover
C) supplier use of electronic data interchange (EDI)
D) fit of merchandise to modular displays

Question

Quizplus · Accepted Answer

The model stock approach is all about determining the right assortment of merchandise that a retailer should maintain in its store. It involves analyzing sales data and other factors to figure out the optimal mix of products that should be available for customers. Therefore, option A is the correct choice. Inventory turnover (B) is important, but it is not directly related to determining space needs. Supplier use of electronic data interchange (C) is also not directly relevant to determining space needs. Finally, fit of merchandise to modular displays (D) is important for visual merchandising, but it is not the primary factor that a retailer considers when determining overall space needs.

A Retailer Determines Its Space Needs in a Model Stock