Author Question: Which a more accurate depiction of productivity GRMROII or gross margin? Give examples to prove your ... (Read 57 times)

swpotter12 · **on:** Sep 11, 2018

Which a more accurate depiction of productivity GRMROII or gross margin? Give examples to prove your answer.

What will be an ideal response?

Question 2

If a style has on hands but shows no selling last week or for the month, this could mean ________.

a. The style has been marked down
b. The style is obsolete
c. The style may not have made it to the selling floor
d. The style had a high sell thru for the month
e. None of the above

bbburns21 · **Reply #1 on:** Sep 11, 2018

Answer to Question 1

GMROII includes both gross margin and inventory investment or stock turn. If the stock turn is high and the gross margin is minimal I will still be shown as effective. Walmart uses this model. Department stores often use gross margin as they have a much higher markup on and individual product, yet a lower stock turn.

Answer to Question 2

c