Contacting a source of supply may be as simple as having a representative visit the office and meet with the buyer and showcase a collection of the merchandise. This is often termed as a vendor initiated contact. The other method of contacting sources of supply is termed as retailer initiated contacts. This may be as simple as the buyer visiting the central market place. Central marketplaces may be different for different products and... Read more

An extension of the World Wide Web, Semantic Web enables people to share content beyond the boundaries of applications and websites. Programs based on Semantic web can configure appliances. So, if you answer your phone, you won’t have to turn down the music system’s volume, it’ll do so on its own. Of course, the invention of the World Wide Web has... Read more

The process of merchandise planning takes the buyer through to the stage of determining the products that he needs to have in the store and the quantities that he needs of the same. A key decision to be taken by a buyer is to determine where he has to buy the merchandise from. Determining the source who would supply the products as required by the retailer, in the quantities needed by the retailer,... Read more

In the years 1978, James D Armstrong formed JDA Software services in Calgary, Alberta which grew to one of Canada’s largest IBM Midrange software providers. Over the years JDA’s commitment to the industry’s evolving requirements has enabled it to secure the market leading position. The software applications have expanded from core merchandising and point of sale systems to today featuring more than 45 applications that help retailers, manufactures, distributors and wholesalers maximize inventory... Read more

In this method, we suppose that a unit of quantity is taken from a used square and placed in an unused square. We see whether there is any reduction in total cost by this. The cost of squares which are now provided by an additional unit would be added and the costs of the squares from which a unit is taken of are subtracted. The path thus traced out by ... Read more

What is a transportation problem? In a business transaction products would have to be carried from the supplier to the buyer. This is possible by transportation only. However, any of the various means of transportation can be used. But the main thing is that the transportation would involve a certain cost. Transportation cost is a cost which cannot be eliminated. It is immaterial who bears the cost the buyer or... Read more

In the case of serious marketing constraints the firm may be confronted with the problem whether to continue or shut down a particular unit of production for the time being with the help of break even analysis. It can be easily saved. If the contribution from the product is positive, that is, contribution of the product will contribute something to cover the fixed overheads then it would be in business... Read more

Planning is essential to provide direction and serve as a basis of control for any merchandise department. In order to be able to provide the right goods to the consumer at the right place and time, one needs to plan a course of action. Planning in merchandising is at two levels: 1) The creation of the Merchandise Budget, and 2) The Assortment Plan There are two methods... Read more

The primary objective of merchandise planning is profit improvement. As the buyer plans the buying for each department, a better overview of the profitability is available for the retail organization that it will be able to achieve. As the function of merchandising deals with the actual procurement of products for the retailer, it has implications on other areas of the business. The entire process of merchandise planning helps the buyer arrive... Read more

Customers visiting a retail shop, very often, know what they wish to purchase; they may however, be unaware of the specific size, variant or type of product that is best suited for their needs. After an initial assessment of the products available, they may arrive at a decision in terms of the specific product that they wish to purchase. It is at this stage that the merchandise that the retailer has on offer... Read more