Mixed Deck — All CRA Topics Flashcards

Dynamic pricing allows retailers to adjust prices in real time based on which of the following factors?

Answer: Demand fluctuations, competitor pricing, and inventory levels

Dynamic pricing algorithms respond to real-time signals — demand, competition, and stock levels — to maximize revenue per unit.

Which supply chain document formally authorizes a supplier to begin production or ship goods, and is legally binding upon acceptance?

Answer: Purchase order (PO)

A purchase order is the retailer's legal offer to buy specific goods at agreed terms; once accepted by the supplier it forms a binding contract.

A retailer is standardizing its inventory counting procedures. What is the best practice for conducting a physical inventory count?

Answer: Freeze inventory transactions, count systematically by location, and reconcile to system records

Freezing transactions, counting by location, and reconciling to system records ensures accuracy and allows meaningful identification of variances.

A retail store's business continuity plan (BCP) should be tested at a minimum of which frequency according to best practices?

Answer: Annually, with updates after any significant operational change

Annual testing ensures the BCP remains relevant and that staff are familiar with procedures, with reviews triggered by major operational changes.

A retail analyst reviewing incident logs notices a spike in 'near-miss' reports following a new store layout implementation. What does this pattern most likely indicate?

Answer: The new layout introduced unidentified hazards that need immediate assessment

A spike in near-misses following a physical change is a leading indicator that the new layout created new hazards requiring safety reassessment.

In Retail Link, what does a '0% In-Stock' reading on a store-item combination most likely indicate?

Answer: The item had no on-hand inventory for the entire measurement period

A 0% In-Stock reading means the item recorded zero on-hand units throughout the entire measurement period, signifying a stockout.

A retail chain's supply chain risk assessment reveals single-source dependency for a key private-label product manufactured overseas. The recommended risk mitigation strategy is to:

Answer: Qualify and onboard at least one alternative supplier to reduce concentration risk

Qualifying an alternative supplier directly addresses single-source concentration risk by creating redundancy without eliminating the product or dramatically inflating inventory costs.

In a retail strategic planning context, 'white space analysis' identifies:

Answer: Unmet customer needs or underserved market segments the retailer could enter

White space analysis uncovers gaps in the market—customer needs or segments that competitors have not adequately addressed—representing growth opportunities.

A fashion retailer receives 500 units of a seasonal jacket but only sells 350 by season end. What is the sell-through rate?

Answer: 70%

Sell-through = units sold ÷ units received = 350 ÷ 500 = 70%.

A retail chain operates 200 stores. If it closes 20 underperforming stores and total revenue drops by only 3%, what does this suggest?

Answer: The closed stores were contributing minimal revenue relative to their costs

A small revenue decline from closing 10% of stores suggests those stores generated disproportionately low sales, making closure financially beneficial.

A store's same-store sales (SSS) increased 5% year-over-year. What does this indicate?

Answer: Existing store locations grew revenue by 5%

Same-store sales (also called comparable-store sales) measures revenue growth at locations open for at least one year, excluding new stores.

When a retailer reduces SKU count to improve supply chain efficiency, this strategy is known as:

Answer: SKU rationalization

SKU rationalization eliminates underperforming or redundant items to reduce complexity, lower costs, and improve inventory efficiency.

A retailer implements dynamic pricing technology. Which factor would this system most likely use to adjust prices in real time?

Answer: Competitor pricing, demand signals, and inventory levels

Dynamic pricing engines continuously analyze competitor prices, real-time demand, and stock levels to optimize price points automatically.

In heatmap analysis of store layouts, what does a 'cold zone' represent?

Answer: Areas with very low shopper traffic or dwell time

Cold zones are store areas that receive minimal foot traffic, signaling opportunities to reposition products or improve signage.

What is 'cross-merchandising' in retail store layout?

Answer: Displaying complementary products together to encourage add-on purchases

Cross-merchandising groups complementary items across categories to prompt impulse purchases and increase basket size.

Which metric evaluates profitability per unit of selling space?

Answer: Sales per square foot

Sales per square foot measures revenue generated per unit of retail floor space, helping assess space productivity.

When documenting activities related to safety protocols & risk management, which practice is considered essential for CRA certification holders?

Answer: Maintaining comprehensive records that include procedures, observations, results, and any anomalies

Comprehensive documentation that includes procedures, observations, results, and any anomalies is essential in safety protocols & risk management. This supports quality assurance, enables peer review, and satisfies regulatory and audit requirements.

A Retail Link user receives an 'Access Denied' error when attempting to run a report on a specific category. The most common reason is:

Answer: The user's supplier account does not have authorization for items in that category

Retail Link access is supplier-specific; users can only view data for categories and items their company is authorized to sell.

A CRA analyst is asked to reduce customer churn. Which leading indicator is most useful to monitor?

Answer: Purchase frequency decline among active loyalty members

Declining purchase frequency among loyalty members is an early warning sign that customers are disengaging before fully churning.

Which cybersecurity standard is specifically relevant for retailers that accept credit and debit card payments?

Answer: PCI DSS (Payment Card Industry Data Security Standard)

PCI DSS is the mandatory security standard governing how retailers must protect cardholder data when processing, storing, or transmitting payment card information.