CRT CRT Retail Operations & Inventory Management

Question 1

What does FIFO stand for in retail inventory management?

Accepted Answer

First In, First Out

Answer

FIFO (First In, First Out) means selling older stock before newer stock to maintain product freshness and prevent spoilage or aging issues.

Question 2

When conducting a physical inventory count, what is the primary reason for comparing physical counts to system records?

Accepted Answer

To identify shrinkage, theft, and data entry errors

Answer

Comparing physical counts to system records identifies discrepancies caused by theft, spoilage, miscounts, or data entry errors — all forms of shrinkage that reduce profitability.

Question 3

What is a planogram in retail operations?

Accepted Answer

A visual diagram showing where products should be placed on shelves

Answer

A planogram is a visual merchandising tool that specifies exactly where each product should be placed on shelves to maximize sales and create an organized shopping experience.

Question 4

What is the purpose of a reorder point (minimum stock level) in inventory management?

Accepted Answer

To trigger a purchase order before stock runs out

Answer

A reorder point is the minimum stock level that triggers a new order, ensuring product availability without running out during supplier lead time.

Question 5

In tobacco retail, what is the term for premium cigars sold individually rather than in full boxes?

Accepted Answer

Singles

Answer

Singles are individually sold cigars that allow customers to sample different brands without purchasing a full box, typically offering higher per-unit profit margins for the retailer.

(CRT) Certified Retail Tobacconist Practice Test

(CRT) Certified Retail Tobacconist Practice Test

CRT CRT Retail Operations & Inventory Management