COMPLETE ACTIVITIES $8\mathrm{.}4,8\mathrm{.}5,8\mathrm{.}6$ IN THE COURSE PACK $($KUNZ CHAPTER$)$ TO GET A GOOD GRASP OF THE CONCEPTS COVERED IN CLASS

$1-$ What is model stock plan and why is it important? Explain the importance to a small store of a model stock plan. $(2$ pts$)$

$2-$ A merchandiser has $576$ planned units in the belt classification and has decided on $6$ styles, $2$ sizes, and $12$ colors. What is the assortment variety and volume for belt classification? $(1$ pt$)$

$3-$ Francesca$$s Boutique has a merchandise budget that includes $$53,420$ in planned sales for Dresses, $$5342$ in planned reductions, and $$63,762$ in planned purchases. The assortment includes $4$ sub classifications $($Casual $(30\%),$ dressy $(20\%),$ day$-$to$-$night $(35\%),$ date night $(15\%))$ with $5$styles, $4$ colors, $4$ sizes $($for each sub class$).$ The average first price on the dress is $$45.$ Francesca$$s expects to devote about $50$ square feet to displaying the dresses in each store $(10$ stores$),$ and the shirts to generate approx. $$107$ per square foot during the fall selling period. Markdowns are expected to be $10\%$ of sales. Average Markup is $63\%.$

Based on the information provided:

a$)$ What is the planned volume of the assortment? $($Note: Use Planned Merchandise to Receive figures$)(1\mathrm{.}5$ pt$)$

b$)$ How many SKUs are in this assortment? $(1\mathrm{.}5$ pt$)$

c$)$ What is the model stock for the entire dress assortment? $(1\mathrm{.}5$ pt$)$

PART $2$: ASSORTMENT PLAN CASE $(7\mathrm{.}5$ PTS$)$

$4-$ Mini Case$-1$

Wings is a small children's outerwear manufacturer based in Chicago. Wings$$ mission is to make a profit providing appealing, comfortable, value priced children's outerwear. Wings has $$14\mathrm{.}5$ million in annual retail sales and $$15$ million in $($annual$)$ planned purchases @ retail based on $3$ selling seasons: spring, back$-$to$-$school, and winter. Merchandise classes include infants $(15\%$ of sales$),$ preschool $(20\%$ of sales$),$ boys $(25\%$ of sales$)$ and girls $(40\%$ of sales$).$ Wings$$ largest customer is JCPenney. An EDI system is in place to provide supply chain to the JCPenney account.

You are a designer's assistant employed by Wings. You are responsible for developing a merchandise plan for boy's jackets for back$-$to$-$school $2019.$ The back$-$to$-$school selling period represents $70\%$ of sales for boys. Jackets represent $90\%$ of boy's back$-$to$-$school sales at an average list price of $$60.$ The economy is strong and Wings is expecting a $10\%$ increase in sales for $2019.$ Wings uses keystone markup for list price.

a$.$ What are planned sales for boys jackets for back$-$to$-$school $2019?(1$ pt$)$

b$.$ How many units of boys jackets would you expect Wings to include in the merchandise plan for back$-$to$-$school $2019?(1\mathrm{.}5$ pt$)$

c$.$ The assortment factors that Wings considers when planning model stocks for assortments are style, size, and color. Wings makes boys jackets in $8$ sizes. If SKUs are not going to exceed $300,$ what is the maximum number of styles that can be included in the assortment? $($Assume that you will only use one color.$)(1$ pt$)$

d$.$ Recent selling seasons have shown that color is at least as important an assortment factor as style. Given that information, a reasonable plan for a model stock with a maximum of $300$ SKUs would be $6$ styles, $6$ colors, $8$ sizes. Is it true or false? $(1$ pt$)$