CRT CRT Retail Operations & Inventory Management 2

Question 1

What is 'shrinkage' in retail inventory management?

Accepted Answer

The difference between recorded inventory and actual physical inventory

Answer

Shrinkage is inventory loss resulting from theft, employee theft, vendor fraud, administrative errors, or product damage that creates a gap between book inventory and physical count.

Question 2

What does SKU stand for in retail operations?

Accepted Answer

Stock Keeping Unit

Answer

A SKU (Stock Keeping Unit) is a unique identifier assigned to each distinct product or variant, used to track inventory levels and sales data accurately.

Question 3

What is 'open-to-buy' budgeting in retail?

Accepted Answer

A planned purchasing budget that limits how much inventory can be ordered in a period

Answer

Open-to-buy is a purchasing budget system that calculates allowable order amounts based on planned sales, current inventory levels, and desired ending inventory targets.

Question 4

What is the primary purpose of a point-of-sale (POS) system in a tobacco retail store?

Accepted Answer

To process transactions, track inventory, and generate sales reports

Answer

A modern POS system integrates transaction processing, real-time inventory tracking, sales reporting, customer data management, and compliance tools into a single unified platform.

Question 5

When a customer requests a specific cigar brand that is out of stock, what is the best retail response?

Accepted Answer

Note the request, offer a similar alternative, and follow up when restocked

Answer

Noting the request, offering comparable alternatives, and following up when stock arrives demonstrates exceptional service and maximizes the chance of retaining the customer.

(CRT) Certified Retail Tobacconist Practice Test

(CRT) Certified Retail Tobacconist Practice Test

CRT CRT Retail Operations & Inventory Management 2