BUYING & PLANNING

SUBMITTED TO: MS. SUGANDHA

SUNEJA

Submitted By: JASLEEN

KAUR
Mfm/21/355
Last year sales for 6 months Feb- July= $589345 Anticipated Increase in sales= 5%
Total Reduction planned= 8%
Initial markup planned at 53.9% Desired ending Inventory =$1,90,000
Planned Sales for current year= 5% 589,345+589345 =29467.25+589345
= $6,18,812.25

Month Sale Distribution Stock-to-Sales Reduction

Ration Distribution

Feb 10% 2.4 5%

March 10% 2.4 5%

April 35% 2.1 10%

May 20% 2.0 20%

June 15% 2.0 30%

July !0% 2.0 30%

 1. PLANNED MONTHLY SALE

Month Sale Distribution Planned Total Planned Monthly sales

Feb 10% $6,18,812 =$61,881.2

March 10% $6,18,812 =$61,881.2

April 35% $6,18,812 =$2,16,584.2

May 20% $6,18,812 =$1,23,762.4

June 15% $6,18,812 =$92,821.8

July !0% $6,18,812 =$61,881.2

 2. PLANNED MONTHLY BOM

Planned monthly BOM= Planned Sales * Sales to stock Ratio

Month Stock-to- Sales Ratio Planned monthly sale Planned monthly BOM

Feb 2.4 *$61,881.2 =$1,48,514.88

March 2.4 *$61,881.2 =$1,48,514.88

April 2.1 *$2,16,584.2 =$4,54,826.82

May 2.0 *$1,23,762.4 =$2,47,524.8

June 2.0 *$92,821.8 =$1,85,642

July 2.0 *$61,881.2 =$1,23,762.45

 3. PLANNED MONTHLY EOM

Month Planned Monthly EOM

Feb EOM = $148,514.88

Mar EOM = $454,826.82

Apr EOM = $247,524.8

May EOM = $185,642

June EOM = $123,762.45

July EOM = $190,000

 4. PLANNED MONTHLY REDUCTION

Reduction – 8% 8/100*$618812.25= $49,504.98

Reduction Distribution *Total Planned Planned Monthly

Month % Reduction Reduction

Feb 5% $ 49,504.98 =$2475.24

Mar 5% $ 49,504.98 =$2475.24

Apr 10% $ 49,504.98 =$4950.49

May 20% $ 49,504.98 =$9,900.99

June 30% $ 49,504.98 =$14,851.49

July 30% $ 49,504.98 =$14,851.49

 5. PLANNED REDUCTION AT RETAIL

= Planned Sales + Planned EOM+ Planned Reduction- Planned

BOM

Planned Planned Planned Planned

Planned
Month Monthly Monthly monthly BOM Purchase at
Monthly Sale+ EOM+ Reduction+ - Retail

Feb $61,881.2 $148,514.88 $2475.24 $148,514.88 =$64,356.47

Mar $61,881.2 $454,826.82 $2475.24 $148,514.88 =$370,668.4

Apr $2,16,584.2 $247,524.8 $4950.49 $454,826.82 =$14,232.67

May $1,23,762.4 $185,642 $9,900.99 $247,524.8 =$71,780.59

June $92,821.8 $123,762.45 $14,851.49 $185,642 =$70,546.17

July $61,881.2 $190,000 $14,851.49 $123,762.45 =$142,970.24

 6. PLANNED REDUCTION AT COST

=Planned purchase at Retail *(100%- Initial Markup%)

Planned Purchase at (100%-Initial Markup Planned Production at

Month
Retail %) * Cost

Feb =$64,356.47 46.1% =$29,668.33

Mar =$370,668.4 46.1% =$170,878.13

Apr =$14,232.67 46.1% =$6561.26

May =$71,780.59 46.1% =$33,090.85

June =$70,546.17 46.1% =$32,521.78

July =$142,970.24 46.1% =$65,909.28

Problem 2
Total units
to be Small Medium Large X-Large Total
bought

300 15% 20% 45% 20% 100%

Units in Each 45 60 135 60 300

PERCE
COLO R Small Medium Large X-Large Total
NATGE

WHITE 20% 9 12 27 12 60

GREY 35% 16 21 47 21 105

BLACK 15% 7 9 20 9 45

GREEN 15% 7 9 20 9 45

GARNET 15% 7 9 20 9 45
 PERCE
COLOR Small Medium Large X-Large Total
NATGE

WHITE 9 12 27 12 60

Cotton 60% 5 7 16 7 35

Blend 40% 4 5 11 5 25

GREY 16 21 47 21 105

Cotton 60 % 10 13 28 13 64

Blend 40% 6 8 19 8 41
 PERCE
COLOR Small Medium Large X-Large Total
NATGE

BLACK 7 9 20 9 45

Cotton 60% 4 5 12 5 26

Blend 40% 3 4 8 4 19

GREEN 7 9 20 9 45

Cotton 60 % 4 5 12 5 26

Blend 40% 3 4 8 4 19
 PERCE
COLOR Small Medium Large X-Large Total
NATGE

GARNET 7 9 20 9 45

Cotton 60% 4 5 12 5 26

Blend 40% 3 4 8 4 19
 PERCE
COLOR Small Medium Large X-Large Total
NATGE

WHITE 9 12 27 12 60

Cotton 5 7 16 7 35

NON- 80% 4 6 13 6 29
HOODED

HOODED 20% 1 1 3 1 6

Blend 4 5 11 5 25

NON- 80% 3 4 9 4 20
HOODED

HOODED 20% 1 1 2 1 5
COLOR PERCENATGE Small Medium Large X-Large Total

GREY 16 21 47 21 105

Cotton 10 13 28 13 64

NON- 80% 8 10 22 10 50
HOODED

HOODED 20% 2 3 6 3 14

Blend 6 8 19 8 41

NON- 80% 5 6 15 6 32
HOODED

HOODED 20% 1 2 4 2 9
COLOR PERCE Small Medium Large X-Large Total
NATGE

BLACK 7 9 20 9 45

Cotton 4 5 12 5 26

NON- 80% 3 4 10 4 21
HOODED

HOODED 20% 1 1 2 1 5

Blend 3 4 8 4 19

NON-
80% 2 3 6 3 14
HOODED

HOODED 20% 1 1 2 1 5
 PERCE
COLOR Small Medium Large X-Large Total
NATGE

GREEN 7 9 20 9 45

Cotton 4 5 12 5 26

NON-
80% 3 4 10 4 21
HOODED

HOODED 20% 1 1 2 1 5

Blend 3 4 8 4 19

NON-
80% 2 3 6 3 14
HOODED

HOODED 20% 1 1 2 1 5
 PERCE
COLOR Small Medium Large X-Large Total
NATGE

GARNET 7 9 20 9 45

Cotton 4 5 12 5 26

NON-
80% 3 4 10 4 21
HOODED

HOODED 20% 1 1 2 1 5

Blend 3 4 8 4 19

NON- 80% 2 3 6 3 14
HOODED

HOODED 20% 1 1 2 1 5