Stock Balance

Staple Stock List – The list of items that are to be carried regularly in stock.

Statistical Demand Analysis – A method of developing a sales forecast that attempts to determine the relationship between sales and the important factors affecting sales, typically using regression analysis, and the use of that relationship to forecast sales for the future.

Statistical Efficiency – A measure used to compare sampling plans; one sampling plan is said to be superior (more statistical efficient) than another if, for the same size sample, it produces a smaller standard error of estimate.

STEAM – A model for predicting the sales over time for a new frequently purchased consumer product based on panel data. The approach explicitly considers heterogeneity across households in their purchase behavior, and models repeat purchase as a function of the household’s depth of repeat level.

Stimulus Response Sales Approach – A sales presentation method that emphasizes the importance of saying the right things at the right time by means of a well-prepared sales presentation (stimulus) in order to elicit the desired response (sale).

Stochastic Model – Strictly speaking, this is any model having a stochastic, i.e., probabilistic or random, component. this component can stem from a variety of sources. It arises in models for a single individual making a single decision (e.g., to represent the effect of uncertainty). Randomness also is incorporated in modeling multiple events for a single individual (e.g., to represents the (unmeasured) heterogeneity across individuals. In each case the result is a process that, for the standpoint of the observer, appears to have a random component. Often the term stochastic model denotes a more narrow subset of models; namely probability mixture models.

Stock Balance – This balance is concerned with planning and controlling merchandise investment so that it is balanced with expected sales. the three perspective from which one can view balance are (1) stock width (breadth), (2) stock support (depth), and (3) total dollars invested in stock.

Stock Control – This includes all the activities that are carried on to maintain a balance between inventories and sales.

Stock Depth – The number of units in individual merchandise items needed to meet sales of each assortment factor.

Stock or Inventory Control – A system or approach to the management of material that is received, stored, and distributed within the firm and between the firm and its vendors or customers.

Stock Rotation – A term used in inventory management to describe the process of moving stock to ensure freshness and shelf life of inventory.

Stock Shortage – This includes all unexplained or unrecorded shrinkages in the value of merchandise available for sale. It is the amount by which a physical inventory is short of a book inventory figure.

Stock Turnover – 1. (physical distribution definition) The number of times average stockkeeping units are sold during a specific time period (usually one year). 2. (retailing definition) An index of the velocity with which merchandise moves into and out of a store or department. The rate of stock turnover is the number of times during a given period, usually on an annual basis, that the average inventory on hand has been sold and replaced. It is computed by dividing sales by average inventory, with both stated in comparable valuations, either cost or selling price.

Stock-out – 1. (physical distribution definition) A stock-out occurs when buyers are unable to fulfill their purchase intentions in a specific buying situations. 2. (retailing definition) A situation in which a retail store does not have enough items of a particular kind in stock to meet customer demand; thus the product is not available to consumers.

Stock-Sales Ratio – The ratio between the stock on hand at the beginning or end of a period and the sales for that period. It is determined by dividing stock, preferably at the beginning of the period, usually monthly, by sales. It is distinguished from inventory turnover or stock turnover, which are ratios or averages for a period of time, usually annually.

Stockkeeping Unit (SKU) – 1. (physical distribution definition) A specific unit of inventory that is carried as a separate identifiable unit. A pint bottle and a quart bottle of the same product would be separate SKUs for inventory purposes. 2. (retailing definition) The lowest level of identification merchandise.

Stockpiling – The situation in which consumers buy multiple units of products that are on deal and hoard those products for future use.

Store Atmosphere – The effective (emotional) and cognitive states consumers experience in store, but may not be fully conscious of when shopping.

Store Image – 1. ( consumer behavior definition) The total of what consumers think about a particular store. 2. (retailing definition) The way in which a store defined in a shopper’s mind. It is based on the store’s physical characteristics, retailing mix, and a set of psychological attributes.

Store Layout – The interior retail store arrangement of departments or groupings of merchandise. It should be organized to provide for ease of customer movement through the store and to provide for maximum exposure and attractive display of merchandise.

Store Loyalty – 1. (consumer behavior definition) The degree to which a consumer consistently patronizes the same store when shopping for a particular types of products. 2. (retailing definition) A condition in which a consumer regularly patronizes a specific retailer.

Store Patronage – The degree to which a consumer shops at a particular store relative to competitive outlets.

Straight Commission Plan – A sales force compensation plan than uses commission as the sole basis for pay. A commission is payment for achieving a given level of performance. Salespeople are paid for results. Usually, commission payments are based on the profitability of sales so as to motivate the sales force to expend effort on the most profitable products or customers.

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