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Multiple Choice Questions

Category Knowledge Knowledge Knowledge

Difficulty Level Easy Intermediate Easy

Question Rank Retail Industry in terms of IT spending in the US What is the approximate size of the worldwide Retail Industry? What is the approximate worldwide IT spending for the retail industry(as in 2004)? Procure merchandise (product that is sold) in large quantities and Sell off in units to end users. What is it termed as? SKU can be expanded as Home Furnishings falls under which retail category? Books, Music, Software falls under which Retail category? If you are looking for buying a specific electronic item (Car Audio) and want to do some research to find something suited exactly to your needs, and at the lowest of market prices, which Retail Store format would you choose? Its Sunday, you want to shop for your entire Household goods, Groceries, Apparels, Jewelleries for the month, eat out, watch a movie and come back, all under one roof. Which Retail format would you go to? A 21 inch Color TV( Sony) would be an example of Which two types of Stores are similar? Asian Sky Shop is an example of ?

Option 1 4 $8 Trillion $200bn

Option 2 5 $12 Trillion $110bn

Option 3 3 $50 billion $250bn

Option 4 6 $75 billion $100bn

Correct Answer (Option) 2 1 2

Comprehension Knowledge Comprehension Comprehension

Easy Easy Intermediate Intermediate

Bulk Intake Stock keeping unit Apparel Durables

Bulk Holding Store keeping unit Durables Stationaries

Bulk Breaking Sales keeping unit Soft Goods Hard Lines

Bulk Sourcing None Hard lines Entertainment

3 1 3 1

Analysis

Intermediate

Specialty Store

Category Killer

Hypermarket

Supermarket

Analysis Analysis Comprehension Comprehension

Intermediate Intermediate Intermediate Intermediate

Shopping Mall Merchandise Classification Specialty Store & Category Killer Tele-Shopping

Hypermarkets Merchandise Category Specialty Store & Mom-n-Pops Non-Store format

Wholesale Club Merchandise Group Hypermarket & Supermarkets Infomercial

Mom-n-Pop Superstore None of the above Both 1 & 3 Both 1&2

2 4 4 4

Analysis Synthesis

Intermediate Difficult

e-Tailing involves? "Every Day Low Pricing" strategy can be applied to which retail format?

Products shown on TV and then purchased by either making calls or placing orders through internet Category Killer

Catalogues having product information distributed to households and then sold through various means Discount Stores Handling the high number of SKU's at multiple locations (SKU X Location combination) Home Depot Japan Home Depot accounts for France high share in Sales Employee Turnover Discount Stores Hypermarkets Merchandising Assortment Inventory Turns

Order placed on the Store Website and delivered at home Hypermarkets

Electronic Retailing at the Cash Counter, with Electronic Sales Transaction and Billing Both 2 & 3

3 4

Evaluation Knowledge Knowledge

Difficult Intermediate Difficult

Which is the bigest challenge in retailing? Which is the worlds second largest retailer? (In terms of retail Sales, 2002) Which is the second largest country (by Top 200 retailer origin)?

Handling Customer complaints and returns? Walmart UK

Pricing the Products Carrefour US Carrefour accounts for France high share in Sales Net Margin Hypermarkets Convenient Store Both 1&2 Manufacturing of Products Both 1&2

Setting up the Store Layout to influence buying Kroger Germany Metro accounts for France high share in Sales Competition Mapping Specialty Stores Specialty Stores Shelf Management Inventory Holding None

2 3 2

Synthesis Synthesis Comprehension Comprehension Comprehension Comprehension Comprehension

Difficult Difficult Intermediate Intermediate Easy Easy Intermediate

France - 5.5% by No. Of retailers, whereas - 9.3% by Sales. Why? Which of the following is not considered Performance Measure in Retail from Growth perspective Wal-Mart does not operate in one of the following Store formats JUSCO is a Which of the following a key element in Retail Process Model ? Which of the following activities typically are not done by retailers Which of the following is a key measure for entire retail organisation ?

Small Number of Big players in France Revenue Growth Warehouse Clubs Supermarket Budgeting & Forecasting Bulk Breaking GMROI

3 3 4 3 3 3 3

Comprehension

Intermediate

Planning for target Market is an example of?

Strategic Planning

Tactical Planning

Operational Planning

None

Evaluation Analysis Comprehension Comprehension Comprehension Comprehension Analysis Analysis Knowledge Comprehension Analysis Synthesis

Difficult Intermediate Intermediate Easy Easy Easy Intermediate Intermediate Easy Intermediate Intermediate Difficult

Which of the following is not a part of Strategic Planning? Strategic Planning is essentially done? Planning for Pricing, Promotions, Markdowns, Assortments are part of? Planning for Product mix, depth and width is part of? A lifesize cutout of a celebity endorsing a watch in a Store is an example of? Point Of Purchase (POP) decisions are influenced by? Vendor Identification is a part of? Invoice Matching is a part of? Which does not form an operational silo in Merchandise Management? Maintaining Stock levels at different stores to fulfill demand and maximize revenues is called? Planning for an In-Season markdown is an example of? Which of the following do not count as Operational Planning?

Retail format selection Top Down Merchandise Planning Product Planning Store Layout Store Layout Sourcing Sourcing Allocation Inventory Management Bottom Up planning Safety Stock plans Sourcing, Merchandising, Distribution, Store Operations Sourcing Store Layout

Overall Marketshare projection Bottom Up Tactical Planning Assortment Planning Visual Merchandizing Visual Merchandizing Order Management Order Management Ordering Allocation Operational planning Exception resolution Procurement, Design, Assotrment, Customer Fulfilment Merchandising Store Operations

Planning for the Retail Mix Over a 5 year horizon Demand Planning Merchandise Planning Shelf design Store fixtures, lighting Contract Management Contract Management Pricing Replenishment Middle Out planning Setting Ordering Policies Sourcing, Allocation, Distribution, Store Operations Both 1&2 Store fixures, lighting

Gross Sales Target for the next 5 years Both 1 & 3 All Of the above Item Planning None All Of the above None None Warehouse Management Stock Optimisation Both 1&2 In-Season markdown plans Sourcing, Merchandising, Logistics, Store Layout Procurement Store POS

3 4 4 2 2 4 1 2 4 2 4 3

Comprehension Comprehension Comprehension

Intermediate Difficult Intermediate

The four primary Retail operations are Order Management is a part of? Shelf Space Optimisation forms part of?

1 2 2

Knowledge

Intermediate

Joint Vendor Collaboration forms part of? Customers latent need is a formal shirt, which do not wrinkle, and absorbs sweat. This result is an outcome of ?

Design

Development

Product Sourcing

All Of the above

Analysis

Intermediate

Concept

Design

Research

None of the above

Analysis

Intermediate

Customers require an adhesive which is Easy to use and do not stick. The next step is ? Customers latend need is Fuel-economy in cars. Company is thinking of various energy sources, from Bio-Gas to hydrogen to Electricity. Which is the phase?

Concept

Design

Development

Research

Analysis

Intermediate

Concept

Design Vendor Negotiation Private Labels Trade Show Vendor Negotiation Retail Format of the Retailer Vendor Service criteria Distribution Lead Time Vendor Service criteria Adherence to Contract Vendor Evaluation criteria Unplanned events Opening Stock On Order PO Vendor Initiated Centralized forecasting Supplier Simple Average

Development Contract Management National Brands Panasonic Road Show Central Market Store Layout of the Retailer Vendor Adapatibility Vendor Managed Inventory Vendor credibility Both 1&2 Vendor Evaluation results Sourcing Lead time Closing Stock On Transit MMS Both 1&2 Stock-Outs Both 1&2 Weighted Average

Research All of the above forms part of Sourcing Imported Brands None of the above None of the above None of the above Both 1&3 Both 1&2 Vendor Flexibility None of the above All Of the above All Of the above Supplier Proximity On Hand + On Order Invoice None of the above Forward Buying None of the above All of the above

Analysis Synthesis Comprehension Knowledge Comprehension Analysis Comprehension Knowledge Knowledge Analysis Analysis Comprehension Comprehension Knowledge Knowledge Evaluation Comprehension Knowledge

Intermediate Intermediate Difficult Intermediate Intermediate Intermediate Intermediate Easy Easy Intermediate Difficult Difficult Intermediate Intermediate Easy Difficult Difficult Intermediate

Which of the folllowing do not form part of Sourcing MTV T-shirts is an example of Motion Display stall from Panasonic at the POP Asia 2005 is an example of Vendor Initiated communication in Sourcing involves Vendor Selection criteria may include Vendor agrees to change Product specifications during InSeason is an example of which criteria? Vendor Distribution criteria includes Vendor offers Financial credit (installment schemes) and Bulk Discounts. Which selction criteria does it score in? Vendor Service criteria includes Components of Contract Management includes Sourcing triggers in Operational Sourcing includes Buffer stock to be held by a Retailer is dictated by Quantity available with Retailer is defined as stock A legal contract between Retailer and Vendor / Manufacturer is defined as Supplier contacts can be Vendor managed inventory results in In vendor managed inventory, Purchase orders are generated by Vendor Evaluation uses the following calculation method in Vendor Qualification

Vendor Qualification Licensed Brands Central Market Vendor Shop Vendor Offering Credit Services Merchandise criteria Network exclusivity Vendor Reputation Quality Assurance from Vendor Storage agreements Safety Stock Demand Variance On Hand ASN Supplier Initiated De-centralized forecasting Retailer Moving average

4 1 2 4 1 4 4 2 4 1 4 1 4 4 3 2 2 3

Knowledge Knowledge Comprehension Comprehension Application

Easy Easy Intermediate Easy Difficult

ASN Can be expanded as ASN-Advanced shipment notification is generated by Depth in Assortment planning refers to As the Requested product availability rate Increases, Inventory level MOQ: Minimum Order Quantity is defined as A distinct, manageable group of products/services that CONSUMERS perceive to be interrelated and/or substitutable in satisfying their need(s) is defined as Re-Order point = demand (lead time + review time) + ?? Gross sales for a given period minus customer returns and allowances is Difference between net sales and total cost of merchandise sold is In Food/FMCG category of retailing, which of the following is gaining widespread significance A computerized means of integrating order processing with production, inventory, accounting and transportation is A method in which supplies arrive when they are needed for production or sale A department had net sales of $300,000 with the total cost of merchandise sold at $180,000. Find the dollar gross margin If Net Profit = Gross Margin - Operating Expenses, Net Profit% = Net Profit/Net Sales, Gross Margin = Net Sales Cost Of Merchandise. Given, Net profit is 2.5%, Gross margin is 7000$, Operating expenses is 6600$. Cost of goods in dollars is Assuming Lead time of 3 Weeks, Review time of 1 Week, Demand of 100 Units, Order point is Price reduction planning of merchandise does NOT include

Advanced store notification Ware-House manager Different line items Increases Demand * (Stock / Sales Ratio)

Advance shipment notification Store Manager Assortment within a line Decreases Demand * (Sales Ratio / Stock)

Actual shipment notification Supplier Multiple categories Remains Same Demand / Sales ratio

Actual store notification None of the above Multiple brands Not Related Stock / Sales ratio

2 3 2 1 1

Knowledge Application Knowledge Knowledge Evaluation

Intermediate Intermediate Easy Easy Difficult

Brand Safety Stock Net Profit Gross Margin Partnership Management Electronic Data Interchange (EDI) Inventory Management

SKU Ordered Quantity Net Sales Total Cost Category Management Automated Order handling Postponement Strategy

Category MOQ Profit GMROI ProductDevelopment Inventory Management Just In Time

Group Lead Time Sales Price Profit Logistics

3 1 2 1 2

Knowledge Comprehension

Intermediate Difficult

None of the above Material Handling

1 3

Application

Intermediate

$100,000

$120,000

$480,000

None of the above

Application Application Comprehension

Difficult Intermediate Easy

$9,000 200 units Markdowns

$10,000 400 units Discounts

$8,000 300 units Shortages

None of the above 100 units Markup

1 2 4

Application Knowledge Application

Intermediate Easy Intermediate

A specialty dress shop made purchases amounting to $3,700 at cost, with 8% cash discount earned, workroom costs of $100 and no transportation charges. Determine Total Cost of Merchandise Sold Which of the following ensures that the company will not be exposed to a stock level greater than that is planned What is given by: Inventory BOM - Sales markdowns/shrinkage + Receipts - EOM Inventory = ??

3500 Sales Forecast Net Sales

3505 Financial Plan Net Receipts

3504 Open to Buy OTB

3503 None of the above None of the above Only Vendor Identification is aprt of it Store Maintenance Allocation

3 3 3

Analysis Knowledge Knowledge

Easy Difficult Easy

Vendor Qualification is a part of Merchandise Management. Shrink and Cycle Counts are considered key in "A marketing tool designed to induce consumers to purchase a product is better known as A proper inventory management culture ensures the following

TRUE Buying Price Cash flows are not locked in inventory Retail price - Cost of the merchandise

FALSE Selling Promotion The merchandise is frequently refreshed Previous retail price -lowered retail price

Partially true Inventory Management Ordering Ageing of inventory is studied and addressed Cost of merchandise - Discounts

2 3 2

Evaluation

Intermediate

All Of the above

Analysis

Intermediate

Dollar Markdown is given by Integrated approach to demand planning, taking into account Supplier Forecasts and using the Consensus plan to plan for Inventory levels that triggers replenishment is called Merchandise Mix covers the following components In Merchandise management, where should I put it? This is called ? In Merchandise management, How should I buy it? This is called ? In Merchandise Management, Demand Side management includes In Merchandise Management, Supply Side management includes Prices of Ethnic potteries from Rajasthan sold at a 5-star hotel lobby is an example which Pricing factor

None of the above

Knowledge Synthesis Knowledge Knowledge Comprehension Comprehension Synthesis

Intermediate Difficult Intermediate Intermediate Intermediate Intermediate Intermediate

CPFR Merchandise variety Ordering Ordering Pricing & Ordering Pricing & Ordering Customer

RFID Merchandise Depth Allocation Allocation Pricing & Allocation Ordering & Allocation Cost

GTIN Merchandise breadth Pricing Pricing Promotions & Replenishment Allocation & Replenishment Competition

GDS All Of the above Promotion Promotion Pricing & Promotions Both 2&3 Demand-Supply Balance

1 4 2 1 4 4 1

Synthesis Analysis

Intermediate Intermediate

Crude Oil prices are shooting up. Which factor is playing its role? The latest version of E-class from Mercedez is priced at 40 lacs. What objecive do you think it serves? Handset manufacturers are fighting their neck out to reduce handset prices at par with competition. Which objective do you think this predatory pricing serves?

Customer Margin Objective

Cost Sales Objective

Competition Image Objective

Demand-Supply Balance All Of the above

4 3

Analysis

Intermediate

Margin Objective

Sales Objective

Image Objective

All Of the above Dispose Merchandise that fails Quality checks

Comprehension

Easy

Factory Outlets of big brands are established to serve which specific operational pricing objective? Some of the following can be a reason to phase off Ladies Denim Jeans?Cotton Capris are in vogue, Denim is out of fashion, Ladies are preferring trousers. What will you do as a retailer? A huge banner at the entrance of a shopping mall says "Upto 50% off". What type of promotion is this? The budgeted/planned disposable dollar value that a Retail buyer has to plan his merchandise intake in the beginning of month is called Operational/Transactional aspects of procurement within the OTB budget is called Invoice Matching matches what? Tracking Of Stock Levels at various touchpoints, and triggering the movement of stock based on various parameters is called Stock required to fulfil expected demand during lead time is called Sock required to fulfill unexpected variations in demand is called

Dispose Inventory

Match Demand to Supply

Match Supply to Demand Give Price discounts on Ladies Denim jeans TPR (Temporary Price Reductions) Beginning Of Month Cash Ordering ASN with PO

Evaluation Comprehension

Intermediate Intermediate

Cannibalise Capris Feature Advertisements

Promote Denim Store Displays

All Of the above Coupons & free Gifts

3 2

Knowledge Comprehension Comprehension

Easy Intermediate Difficult

Merchandise Budget Procurement Invoice with Receipts

Open To Buy Payables Management Invoice with ASN Stock Management Store Stock Safety Stock

None of the above Invoice Reconciliation Receipts with PO

2 3 1

Knowledge Knowledge Knowledge

Easy Intermediate Intermediate

Allocation Buffer Stock Buffer Stock

Replenishment On- Hand Stock Periodic Stock

None of the above Periodic Stock Both 1&2

3 4 4

Knowledge Knowledge

Easy Easy

Which of the following is not an Out-bound process in Warehousing Which of the following is an In-Bound process in Warehousing

Order Processing Picking

Put-Away Put-Away

Replenishment Replenishment

Shipping Order Processing

2 2

Comprehension Knowledge Knowledge Knowledge

Difficult Intermediate Intermediate Difficult

Which of the following was traditionally considered a Cost Container and now is emerging as an enabler and regulator of supply chain effectiveness Which of the following is not a Warehousing function ? Large centralized warehouses that focus on moving rather than storing goods are known as ? Business that lease out storage space are called? Consolidation of many small items into a single large container providing increasing handling efficiency is called? Movement of stock as triggered by replenishmnet in line with allocation output is called Which of the following is out of the scope of Distribution Operations? When merchandise is allocated to Stores after it reaches the warehouse, based on replenishment orders from Stores, it is called Which distribution strategy requires frequent Store-Store Inventory balancing and involves high Inventory carying cost and Inventory duplication? The distribution best practice in which In-Bound Logistics at the DC/Warehouse is unloaded and immediately loaded to Out-Bound trucks without any Warehouse/DC processing is called? Outbound Logistics movement is triggred by the following except? Which of the following is not a Storage point in the distribution network? Which of the following is NOT a DC function? Which of the following is NOT a delivery mode in Customer Fulfilment? In Non-Store retail format, which is not a part of customer Fulfilment Taking Customer Order, and committing to the customer a delivery date, is called?

Merchandise Management Storage Private Warehouses Private Warehouses

Logistics & Distribution Recipt Public Warehouses Public Warehouses

Sourcing Shipment Distribution Centres Distribution Centres

Store Operations Buying None of the above None of the above

2 4 3 2

Knowledge Comprehension Comprehension

Difficult Intermediate Intermediate

Unit Loading Replenishment Warehouse Management Pre-Distribution Strategy Pre-Distribution Strategy

Containerization Allocation Out-Bound logistics management Post-Distribution Strategy Post-Distribution Strategy

Bulk Loading Distribution Network setup

None of the above None of the above In-Bound logistics Management Replenishment Strategy Replenishment Strategy

2 3 3

Comprehension

Difficult

Allocation Strategy

Knowledge

Intermediate

Allocation Strategy

Knowledge

Difficult

Deadheads Replenishment Orders from the stores DC Receiving Store Delivery Telephone Order Creation

Backhauling Allocation Plan for Push based items Warehouse Put-Away Home Delivery from DC Direct Salespeople Order Promising

Cross-Docking Inbound Order Quantities and time Of Arrival Store Inventory Accounting Home Delievry from Retailer Warehouse TV Order Planning

None of the above

Synthesis Knowledge Knowledge Knowledge Knowledge Knowledge

Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate

None of the above Locker Rooms None of the above None of the above None of the above Order Fulfillment

4 1 4 2 4 2

Knowledge

Intermediate

Capturing Customer Order, and then planning to deliver the goods/services forms part of? Which of the following is the Key for In-store operations for any Retailer

Order Creation WareHouse Management System

Order Promising

Order Planning POS Systems (Point Of Sale)

Order Fulfillment

Comprehension

Intermediate

SAP Provide a conducive buying environment, and facilitate decision making for customers Store layout Store layout

None of the above

Comprehension Knowledge Knowledge

Easy Easy Easy

Store Operations are geared towards which of the following? Store Operations do not involve the following Setting up Back-Office and Parking space forms part of Gathering Sales data and feeding back to decision Support systems to analyse pattens in Consumer purchase is part of Grocery Stores are mostly arranged in? Departmental Stores selling Apparels and General merchandise are mostly arranged in? Shelf Space allocation to different Products, and optimising their placement for maximum visual attraction for potential consumers is an example of Design Of Passage Area is an example of Store fixture arrangement, lighting, attractive colours, celebrity endorsed cut-outs are all examples of

Making Stock available to fulfil demand Store Setup Store Setup

Provide After Sales service, repairs Store location selection Store location selection

All Of the above Point Of Sales Point Of Sales

4 3 1

Knowledge Comprehension Comprehension

Intermediate Intermediate Intermediate

Visual Merchandise Grid Layout Grid Layout

Point Of Sales Race Track Layout Race Track Layout

Point Of Purchase Free Flow Layout Free Flow Layout Shelf Space Optimisation Store location selection Visual Merchandising

None of the above None of the above None of the above

2 1 2

Analysis Comprehension Comprehension

Intermediate Intermediate Intermediate

Visual Merchandising Store Setup In-Store promotions

Store Layout Store layout Store Displays

All Of the above Point Of Sales All Of the above

4 1 3

Knowledge Knowledge Knowledge

Easy Easy Easy

Point Of Sales activities includes all of the following except Point Of Sales is also called Different POS devices are the following except

Managing Sales transactions The Moment Of truth Cash Register

Tracking Customer Orders and Payments The moment of Money Self-Checkout devices

Providing Returns handling, warranties, repairs The Moment of Realisation Pole display units

Analysing Customer data and carrying out Sales Trend Analysis None of the above Kiosks

4 1 1

Synthesis Knowledge

Intermediate Intermediate

POS achieves the following except POS applies to all retail industries except

Better Inventory Control Food & Beverages

Better Employee Productivity Gas Stations

Optimal utlisation of Counter space and avoid Customer queues Hotel InternetBookings

Increase time spent of Sales reports, Invoices, PO's for error elimination Apparels, Accessories

4 3

Knowledge Knowledge

Intermediate Easy

The current Key retailing trends includes Which of the followig do not form a "Key" department in any retail organisation? Which department assigns Store budget for merchandise procurement, Plan assortment mix, decide Pre-Season pricings and In-Season promotions? "Shrink" management (not at stores) is an important responsibility of which department? In the retail business process cycle, ASN (Advance Shipment Notice) is send by the Supplier to whom ? Which of the following is NOT a major force re-shaping the Retail Industry? Which of the following can count as a new entrant posing a threat to traditional retailers? In the US, number of retailers accounting for 20% retail sales has gone down from 30 in 1990 to 19 in 1998. Which megatrend is responsible for this? Which is the most favoured Retail format used by the Top 200 retailers of the world Where do you plot the diferent IT Analysiss and IT enabled processes in terms of maturity level and Visibility?

RFID Finance/Purchase

Wireless POS Merchandise

Multichannel retailing Warehouse

All Of the above Sales

4 3

Comprehension Synthesis Comprehension

Intermediate Difficult Intermediate

Finance/Purchase Finance/Purchase Finance/Purchase Supply Chain Complexity Category Killers

Merchandise Merchandise DC/Warehouse Multi-Channel retailing Discount store format retailers

Assortment Inventory Store Increased Real Estate, Labour and Overhead costs Online Retailers Changing retail Model Specialty Technology Adoption Curve

Pricing & Promotions Logistics None of the above Increasing Customer Expectations All Of the above

2 4 2

Comprehension Evaluation

Intermediate Difficult

3 4

Comprehension Knowledge Knowledge

Intermediate Intermediate Easy

Globalisation Hypermarket Height Curve

Consolidation Supermarket Hype Curve

Cannibalisation None of the above Gartners Curve

2 2 2

Knowledge

Easy

The lowest unit in any Product Hierarchy is?

Brand

SKU

Category

None of the above

Application

Intermediate

GMROI (Gross Margin return On Investment) =? Minimising Truck Mileage, Optimising Fleet space utlisation, Cynamic Cross-dock location selection and optimal routing forms part of? Plano-grams and Assortment Planning is a part of? Inventory Optimisation is essentially done in ? A grocery retailer wants to open a new store, and evaluates possible location options. This forms part of?

Total Assets*gross margin(%) Lead Time Optimisation Merchandise Planning Merchandise Management Store Location Optimisation

Inventory Turns*Gross Margin(%) Shelf Space Optimisation Allocation Planning Merchandise Planning Shelf Space Optimisation Which items should I promote to maximise Shelf disposability and Increase revenue Promotion Planning Shelf Space Optimisation Store Location Optimisation

Gross Margin (%)/ Inventory Turns

None of the above Transport Optimisation Supply Planning None of the above Both 1&3 What Price do I set for the Promoted items as a PreSeason exercise Assortment mix planning Shelf Track Optmisation Inventory Optimisation

Comprehension Comprehension Evaluation Synthesis

Intermediate Easy Difficult Difficult

Carier Optimisation Demand Planning Supply Chain Planning Logistics Optimisation What type of Promotion should I run to attract customers Inventory Planning

4 3 3 4

Analysis Knowledge

Intermediate Easy

Promotion Optimisation addresses the following questions except? Merchandise Planing involves the following except? RFID shelf tags are used to track loading of shelves, during an In-Season promotion of the category placed in those shelves. This is an example of? Which of the following is NOT a strategic optimisation?

When to run the promotion Price Planning

4 4

Knowledge Comprehension

Easy Difficult

Store Planning Distribution network Optimisation

Shelf labeling Transport Optimisation

2 3

Application Application Knowledge Application Knowledge

Intermediate Easy Easy Difficult Intermediate

Forecast Interval is defined as ? Demand Variance is defined as ? Extrapolating the past into future using statistical and mathematical models is defined as? New forecast = old forecast + a (actual demand - old forecast). The value of constant a is One of the widespread method of Forecasting is?

Lead Time Actual Demand Open To Buy 1 Binomial Smoothing

Review Time Forecasted Demand Inventory Planning 0<a<1 Exponential Smoothing

Lead Time + Review Time Forecasted - Actual demand Forecasting >1 None of the Above

Lead Time - Review Time Actual - Forecasted Re-Order Quantity Always =2 Both 1 & 2

3 4 3 2 2

Evaluation Knowledge

Difficult Intermediate

The key features of CPFR are as follows 1) This joint business plan is used to control the day-to-day activities of manufacturing, delivering and selling products 2) Trading partners share consumer demand forecasts, and identify exceptions that occur when partners plans do not match, or change dramatically 3 )Trading partners share replenishment plans, identifying and resolving exceptions. Which of the above statements are true Which of the factors do not influence Forecasting?

1&2 Trend

1&3 Seasonality Quantifying Qualitative Market trends and Competitor Information

2&3 Sales Velocity

All three are true Price Rremoving perception bias and reduce intuitive prediction

4 4

Synthesis

Difficult

Which is not a key challenge in forecasting? For an apparel store BOM Inventory = 100, Sales = 500, markdowns/shrinkages = 20% of Sales, Receipts = 300, EOM Inventory = 50. Find OTB ? The concept in retail planning where Products, Locations and Time dimensions are plotted in a 3-dimensional structure to enable Cross dimensional planning A hierarchy is a collection of cascaded

Deriving Patterns from Historical Sales data

Resolving Outliers and setting Exception criteria

Application

Intermediate

120

250

150

100

Knowledge Knowledge

Easy Easy

Dimension Cube Dimensions

Level cube Levels

Retail cube Members

Retail Hierarchy None of the above

3 2

Synthesis

Intermediate

Lost sales can occur due to the following 1) Forecasts are based on the average of the last n weeks rather than a forward-looking forecasting method. These methods underreplenish going into a peak and over-replenish coming out of a peak 2) Sales history is not adjusted for previous lost sales, so an underlying problem repeats itself 3 ) Forwardlooking forecasts are based on a seasonal profile, which has not been researched thoroughly. 4) Forecasts are smoothed properly to reflect demand variance Given Gross Sales $ = 1000, returns $ = 100, COGS $ = 500 Unit Price = $10, Unit Inventory Cost = $5, Average Inventory = 200. Calculate GMROI% (Neglect returns Inventory) Exponential smoothing of Trend, Level and Seasonality is done in ?

1,2,4

1,3,4

2,3,4

1,2,3

Application Knowledge

Intermediate Easy

30% Triple Plus

20% Triple Exponential Smoothing

40% Weighted Average

10% Both 1&2

3 4

Comprehension

Intermediate

Typical outputs of Merchandise Planning are the following except?

Financial Objectives

Product Mix by SKU

Store/Channel Strategies

Sales/Cost and Inventory Objectives

Comprehension Comprehension Comprehension Comprehension Synthesis

Intermediate Intermediate Intermediate Intermediate Difficult

Which of the following is a popular approach in Merchandise planning Merchandise Budget plan does not specify ? OTB-Open to Buy Helps Retailers to ? Planning of sales budget, Open-to-buy, Range planning is part of ? In Top-Down approach of Merchandise planning, the guiding criteria is ?

Top Down Specific Merchandise objectives Minimize stock-outs Merchandise Planning Sales Forecast

Bottom Up What to buy and in What quantities Maximize sales potential Merchandise Management Merchandise Plans Product Mix at category level from merchandise planning

Combination of 1 & 2 Financial aspects of Merchandise Stock level optimization Range Planning Demand Product Prices from Price Optimisation module of Merchandise Planning

None of the above None of the above All Of the above Logistics Store Budget

3 2 4 1 4

Knowledge

Difficult

Assortment Plan takes the following inputs except? Following are the possible constraints in Assortment Optimisation except? Product Life Cycle incorporates the following stages except? PLC optimisation involves the following except? The economic concept which deals with change in demand with change in price is called? Objective function in Price Optimisation can be?

Sales Forecast at SKU/Store/Week level

Historical Sales data at Category, Region, Month level Merchandise Budget plans/goals Decline Markdown Optimisation Demand Elasticity of Price Net Profit

Synthesis Knowledge Knowledge Knowledge Knowledge

Intermediate Easy Easy Easy Difficult

Shelf space constraints Growth Price Optimisation Price flexibility of demand GMROA

Vendor Capacity Maturity Profit Optimisation Demand flexibility of price GMROI

Pricing constraints Phase-In Promotions Optimisation Price Elasticity of Demand Gross Margin

3 3 2 3 2

Synthesis Comprehension Knowledge

Difficult Intermediate Intermediate

Assortment Plan delivers all the following except? Various constraints in Price Optimisation can be? Setting high prices for a product in maturity stage for maximum revenue before it goes in decline is called?

Breaking Up of Dollar Sales Plan Objectives into SKU-Quantity Plan Objectives PLC Stage constraints Skimming Cost Of Promotions Advertising, Temporary Price Reduction cost etc.

Breaking Up of Category Channel - Week Level Dollar Sales Plans to SKU Store Week level quantity sales plans Seasonal Stage constraints Swimming

Paves way for calculation of OPEN TO BUY for all SKUStore Combinations over time horizons Price Elasticity of Demand Skirming

None of the above All Of the above None of the above

4 4 1

Evaluation

Difficult

Various considerations in Promotions Optimisation can be the following except?

Increased sales

Increased reach

Low visibility

Evaluation Comprehension Knowledge Knowledge Comprehension Knowledge

Difficult Intermediate Easy Easy Intermediate Intermediate

1 )If a retailer had told the manufacturer how much was sold as well as stock data, the latter would then have had the opportunity to anticipate out-of-stock situations and to plan future activities and minimise delays in new production runs 2 )Merely providing (historical) sales figures may result in the manufacturer producing a forecast which matches remarkably to that of the retailer's - and on which are based material buying and production plans 3) It is equally important for the supplier to tell the retailer what percentage of market share of specific products or product groups is held. Which of the above is true? At which stage of PLC, promotion is unimportant? % of market exposed to a specific promotion is known as % by which a given promotion increases the sales of a brand Promotion Optimisation is essentially a trade-of between Markdowns are normally done at which stage of the PLC?

1&2 Introduction Lift Lift Cost vs. Lift Introduction

1&3 Growth Reach Reach Cost vs. depth Growth

2&3 Maturity Depth Depth Lift vs. reach Maturity Magnitude of Price Cut & Timing of Markdown

All three are true None of the above None of the above None of the above All Of the above Decline Timing of Markdown and reduced Inventory Turns

2 4 2 1 1 4

Synthesis

Difficult

The 2 outputs of Markdown optimisation are?

Magnitude of Price Cut & Revenue Effect

Magnitude of Price Cut & Cost Effect

Synthesis Knowledge

Difficult Intermediate

Markdown Optimisation involves balancing between ? Mark-ups are normally done over the base Price during

Increased Sales and Reduced Inventory Off-Season

Increased Sales and reduced Bottomline Maturity Stage

Maximise Revenue and Maximise Price Cuts Peak Season

All Of the above Both 2&3

2 4

Comprehension Knowledge Knowledge

Intermediate Intermediate Intermediate

Identifying Long term negotiation deals, Global and Local purchase decisions, Vendor mix decisions, and setting up an Order management framework forms part of? Joint Vendor collaboration in New Product development is also called? The time between PO generation and Receipt at the Stores is called

Global Sourcing Vendor collaboration Shipment Lead Time

Local Sourcing Vendor managed Development Lead Time Supplier Manufacturing Lead Time Order Collaboration and Distributed Order Execution

Strategic Sourcing Product Sourcing Supplier Lead Time Order Processing Lead Time Balancing Inventory across Supply Chain

Operational Sourcing Joint Vendor Sourcing None of the above Order Fulfilment Lead time

3 3 2

Knowledge

Intermediate

Various components of Lead Time are the following except?

Distribution Lead Time

Synthesis

Difficult

Various best practices that improves Lead Time are?

Demand Visibility Fraction of store and customer demand that is routinely met at first request without store backorders or lost sales.

All Of the above

Knowledge

Intermediate

Fill rate can be defined as?

Fill Rate = Expected Demand Met / Expected Demand Probability of Customer order fulfilled and Probability of Supplier Order received

Fill Rate = Amount of Order from Supplier/ Actual receipts

Both 1 & 2

Knowledge

Intermediate

Customer Service Levels are quantified by?

Fill Rates and Probability Of Stock outs

Fill rate and Probability Of no Stock out

All Of the above

Evaluation

Intermediate

1) If Service Level has to be increased, overstocking may result, if Service level is reduced it may result in Lost Sales 2) If Service Level has to be increased, overstocking may be eliminated, if Service level is reduced it may result in Lost Sales 3) If Service Level decreases overstocking may result, if Service level is increased it may result in Lost Sales 4) Overstocking or Lost sales is independent of Service level. Which of the following is true? Inventory required to meet the Target Customer Service level, and deal with Supply & Demand uncertainties during replenishment cycle is termed as ? Different Ordering Policies/Inventory Policies includes the following except? As Order Quantity increases, Carrying Cost and Ordering cost respectively? In ROP-ROQ model, which is fixed? In ROP-OUTL which is fixed?

Knowledge Knowledge Comprehension Comprehension Comprehension

Intermediate Intermediate Intermediate Easy Easy

Strategic Stock ROP-ROQ Increases, increases Ordering Interval Ordering Interval

Display Stock ROP-OUTL decreases, increases Order Quantity Order Quantity

Safety Stock Min-Max increases, decreases Order frequency Re-Order point

Working Stock EOP-EOQ decreases,decrease s None of the above None of the above

3 4 3 2 1

Analysis Comprehension

Difficult Easy

Inventory Optimisation in Replenishment Planning takes into account the following EXCEPT? Manufacturing Location, DC, Warehouses, Retail stores are all examples of?

Target Customer Service Level Pain Points

Ordering Policies Touch Bases Locating retail Outlets to maximise Market penetration and reduce transportation and Inventory costs Required Store Allocation

Ordering Parameters (Re-Order point, Order Interval, Safety stock, EOQ, OUTL etc.) Touch Points

None of the above Stock Points

4 3

Comprehension

Intermediate

Distribuion Network Planning involves the following except? In Multi-Source Multi-Sink model of Distribution Allocation optimisation, the following are the key constraints EXCEPT? Clubbing of Routes and volumes and transferring of goods between Touch points in the same level of Supply chain is called?

Location of DC's and Warehouses

Optimising Number and Size of Warehouses

Optimisng Storage Space and Flow bay areas of DC's Cost and Time of Transportation (P2P)

Synthesis

Difficult

Finite DC capacity

Item Prices at Stores Intermodal Shipments

Knowledge

Difficult

Cross Docking

Optimal Routing

Transshipments

Comprehension Analysis

Easy Intermediate

Larger Volumes results in? Constraints in Routing Optimisation includes the following EXCEPT?

Higher Costs, Shorter Times Target Service Levels

Higher Costs, Longer Times Lead time

Lower Costs, Longer Times Volume Awareness & Maturity of Technology 5-10 cents UPOS EAN/UCC-8 Global Tracking Item Number 12 digits Both 1&2

Lower Costs, Shorter Times Price

3 4

Comprehension Knowledge Knowledge Knowledge Knowledge Knowledge Comprehension

Easy Intermediate Intermediate Intermediate Easy Easy Intermediate

Which of the following is considered Key Inhibitor for widespread adoption of RFID by Retailers Currently what is the approximate average cost of a passive RFID tag? Which of the following are emerging standards in POS GTIN encompasses the following data structure GTIN is GTIN is a globally unique number consisting of Ways of improving inventory shrinkage are? Following are the parts of 12 digits coding system( UCC-12) 1) Manufacturer ID (5 digits) 2) Country ID (5 digits) 3) Product ID ( 5 digits) Which of the following is true ? The problems that lead to Global Data syncronisation are 1) Inconsistent information between manufacturer and their trading partners' systems 2) Multiple item data formats requiring maintenance of data conversion maps 3) Multiple redundant data sources within organization leading to errors 4) Inefficient and error prone approaches for the exchange and updating of new item information in buyer and seller systems

Reliability $ 10-15 OPOS EAN/UCC-14 Global Trade Identification Number 13 digits RFID tags

Cost Of tag $ 1-4 JPOS EAN/UCC-13 Global Trade Item Number 14 digits Close-Cicuit cameras

All Of the above $50-60 All Of the above All Of the above None of the above 11 digits None of the above

4 2 4 4 2 2 3

Knowledge

Difficult

1&2

2&3

1&3

All Of the above

Synthesis

Easy

1,2,3

1,2,4

1,3,4 Increase time spent on Sales reports, Sales transactions, Inventory Ledger maintenance to eliminate errors

1,2,3,4

Analysis

Easy

Diferent functions of POS includes the following except? Cognizant Solution that provides easy interface to retailers to Identify customers, personalised greetings, highlight promotions, search items by category etc is called?

Optimal Utilisation Of Counter space

Tracking Customer orders and Payments

None of the above

Knowledge

Intermediate

By Your Way

Buy Your Way

New Style Shopping

OPOS

Comprehension Knowledge Knowledge Comprehension

Intermediate Intermediate Intermediate Easy

How are different Bar codes converted to GTIN? In GDS, Supplier published Item information is stored in ? Basic Information about items in GDS, extracted from Items Home data Pool is stored in? Advantages of RFID with respect to a Bar Code reader includes

Right padding zeroes Items Home Data Pool Items Home Data Pool No Direct LOS required Real Time data link on Merchandise, Data and customers throughout the Supply Chain

Left Padding zeroes Global data registry Global data registry No direct POS required Distance constraints of 100 feet is not there

Both 1&2 Synchronization Engine Synchronization Engine A read range of 500 feet and more No direct Line Of Sight required to track items

None of the above Global Data Pool Global Data Pool None of the above

2 1 2 1

Analysis

Easy

Chief advantages of RFID includes This major retailer plans its Top 100 suppliers to do pallet and case level tagging by Jan 2005, next 200 by 2006. Name it?

All Of the above

Knowledge

Difficult

Metro Group

TESCO within business units of an organisation Interrogators People Tracking Will enable to conduct efficient local trade High Employee productivity

Walmart Update synchronisation with internal business units Transponders Slap & Ship Error free information across enterprise Reduced Customer Queues

Target Update synchronisation with external partner systems Antennas Baggage handling Removal of relabeling/ re-marking overhead Easy Tax Calculations

Evaluation Knowledge Comprehension

Intermediate Intermediate Intermediate

Internal Synchronization phase in GDS suynchronises? RFID tags are also called The recent NASSCOM RFID project enabled

Business Processes with Partners Transceivers Asset tracking Will be able to accept the complete family of EAN/UCC data carriers Providing efficient information

2 3 2

Analysis Comprehension

Intermediate Intermediate

Following are the benefits of adopting GTIN except POS solutions reduce Operational costs by the following except

2 3

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