Best Practices & Standard Procedures Flashcards
7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Best Practices & Standard Procedures flashcards as text
A retail analyst is evaluating shrinkage prevention. Which metric best measures the effectiveness of loss prevention procedures?
Answer: Shrinkage rate as a percentage of net sales
Shrinkage rate as a percentage of net sales directly quantifies inventory losses relative to revenue, making it the standard KPI for loss prevention effectiveness.
When conducting a merchandise planning review, which best practice ensures alignment between financial and merchandise plans?
Answer: Reconciling open-to-buy with the financial plan at each planning cycle
Reconciling open-to-buy with the financial plan at each cycle ensures purchasing decisions remain within budget constraints and aligned with corporate targets.
A store experiences consistently high stockout rates on top-selling SKUs. What is the recommended first step to address this?
Answer: Analyze reorder points and lead times for the affected items
Analyzing reorder points and lead times identifies the root cause of stockouts before implementing any replenishment changes.
Which standard procedure should be followed when a significant variance is found between a planogram and actual shelf placement?
Answer: Document the variance, identify the root cause, and reset the shelf to planogram standards
Documenting, identifying root causes, and correcting shelf placement ensures compliance, consistency, and accurate performance measurement.
In retail analytics, what is the best practice for handling outliers in sales data before building a forecast?
Answer: Investigate outliers, determine if they are valid, and adjust or exclude with documentation
Investigating and documenting outlier treatment ensures forecast accuracy while maintaining data integrity and audit traceability.
A retailer wants to standardize its vendor scorecarding process. Which element is most critical to include?
Answer: On-time and in-full (OTIF) delivery performance
OTIF delivery performance is a foundational metric in vendor scorecards because it directly impacts in-stock availability and supply chain reliability.
What is the standard procedure for conducting a post-promotion analysis?
Answer: Measure incremental lift, cannibalization, and ROI against pre-defined promotion objectives
A complete post-promotion analysis measures incremental lift, cannibalization effects, and ROI to objectively evaluate whether the promotion met its goals.