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Which of the Following Statements Does Not Describe the Trade-Offs

Question 45

Multiple Choice

Which of the following statements does not describe the trade-offs that buyers should consider for merchandise assortment planning?


A) Increasing sales by offering more breadth and depth can potentially reduce inventory turnover.
B) Increasing sales by offering more breadth and depth can potentially reduce GMROI by having more stock-keeping units (SKUs) .
C) Increasing breadth and depth can increase the need to put more merchandise on sale and thus negatively affect the gross margin.
D) SKU rationalization programs can help in increasing inventory turnover without reducing sales.
E) The more SKUs offered, greater the chance of breaking sizes-running out of a specific size SKU.

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