How to make Assortment Planning Process

1. THE
ASSORTMENT
PLANNING
PROCESS
By: Elaiza Kathrize Ramos

2. TOPICS

3. Variety
- the number of different merchandising
categories within a store or a department.
Assortment
- the number of stock keeping
unit (SKU) within a category

4. Product Availability
- referred to as the level of support
or service level
- defines the percentage of demand
for a particular SKU that is satisfied.

5. Trade offs between Variety,
Assortment, and Product
Availability
- target market toward which a
retailer plans to commit its resources.
- nature of retail offering that the
retailers plans to use to satisfy the
target markets need.
- bases upon which the retailer
will attempt to build a sustainable
competitive advantage.

6. Determining Variety and
Assortment
1. Profitability of Merchandise Mix
2. Corporate Philosophy toward the Assortment
3. Physical Characteristics of the Store and
Layout of the Internet
4. Complementary Merchandise

7. Determining Product Availability
Cycle Stock or Base Stock
- inventory that results from the
replenishment process and is required to
meet demand when the retailer can predict
demand and replenishment time perfectly.

9. Determining Product Availability
Backup Stock/Safety Stock/ Buffer Stock
- safety cushion for the cycle stock so they
won’t run out before the next order arrives.

11. Internet Assortment
Planning Issues
WHAT SELLS OVER
THE INTERNET?
- Who will buy it?
- Who is your competition?
- Will it look good?
- Does it ship well?

12. The Assortment Plan
- is a process whereby products are
selected and planned to maximize sales
and profit for a specified period of time.