explain merchandise forecasting

Demand forecasting is a critical part of the entire merchandise lifecycle, as the accuracy and timeliness of your forecasts will set the course for the entire selling season. Inventory, markdown and profit targets must be established at the start of every planning cycle. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The realism that good forecasting provides can help you develop and improve your strategic plans by increasing your knowledge of the marketplace. Demand forecasting is a key component to every growing retail business. Forecasting. People generally make short-term forecasts for operational reasons. Retail Merchandise Budgeting. Depending on the size and sophistication of the retail operation, this can be a simple process, or an extremely complex algorithmic exercise. Merchandise allocation is the process of determining how to distribute merchandise to individual store units for maximum sales and minimal markdowns. Internal business demand forecasting is a helpful tool for making realistic projections. Accurate demand forecasting is essential for a firm to enable it to produce the required quantities at the right time and arrange well in advance for the various factors of production e.g., raw materials, equipment, machine accessories etc. MARGIN SALES & FORECASTING OPEN TO BUY Merchandising INVENTORY Process MANAGEMENT PERFORMANCE ANALYSIS STOCK ALLOCATION DISTRIBUTION LOCATIONS People FINANCE SUPPLY CHAIN Influences MANAGEMENT REPORTING POS Systems SUPPLIERS MARKETING MERCHANDISING 2. Merchandise planning is a systematic approach to planning, buying, and selling merchandise to maximize your return on investment (ROI) while simultaneously making merchandise available at the places, times, prices and quantities that the market demands. It can also point you toward areas where you need to build capacity in order to meet expansion goals. Without proper demand forecasting processes in place, it can be nearly impossible to have the right amount of stock on hand at any given time. Start studying chapter 12: managing the merchandise planning process. Assortment plans must determine the ideal product ranges and price lines for each unique location, channel and customer segment. This forecasting model factors in your business financing, cash on hand, profit margins, supply chain operations, and personnel. Top 10 Reasons Why Sales Forecasting Is Important. Merchandise planning step by step process 1. Consistently having the right quantities of the right product in the right place at the right price and at the right time is a cornerstone of effective retail merchandising. Forecasts may be short- or long-term. Sales forecasting is a key element in conducting your business. Having a merchandise plan is critical for the success of every retail business. Stitch Labs is a retail operations management platform for high-growth brands. Forecasting helps a firm to access the probable demand for its products and plan its production accordingly. Accurately anticipating demand and aligning stock positions to those demand forecasts can … Forecasting is a projection of what is going to happen at a much higher level and includes revenue items, overall expenses, and other business components. Merchandise financial and assortment plans represent the foundation upon which successful merchandise lifecycles are built. : managing the merchandise planning process helps a firm to access the probable demand for its products plan! Terms, and more with flashcards, games, and other study tools and assortment plans represent the upon..., or an extremely complex algorithmic exercise merchandise lifecycles are built retail business every growing retail business making... 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