What is MFP process?
The MFP planning process involves multiple user roles. These user roles work together to pass targets and reconcile plans at different levels of the product, location, and calendar hierarchies.
What is MFP in retail?
Merchandise Financial Planning (MFP): This is often referred to as Open to Buy (OTB) and without doubt is the single most important retail financial methodology that retailers must embrace. This involves planning your inventory levels (and therefore range) by category by future months using the retail KPI’s.
What is Merchandise financial planning?
Merchandise Financial Planning is a high-level approach to setting an organization’s sales, margin and inventory targets. During this step in the retail planning process, merchandise planning teams can plan their business without getting caught up in the lower-level details of the product hierarchy.
What do retail planners do?
The Retail Planner drives sales plan through a consistent focus on studying the business, monitoring inventory and sales performance, and providing analysis necessary to bring in new products to fit the needs of the customer.
How do you plan merchandise?
The basic components of retail merchandise planning include:
- Product. First and foremost, the basic component of any merchandise mix is the product.
- Range. This refers to the variety of merchandise that you sell.
- Price.
- Assortment.
- Space.
- Perform a post-season analysis.
- Forecast sales.
- Plan and implement the assortment.
What is assortment planning?
Assortment Planning is the development of chain, store cluster and store level product attributes, styles, colors and SKUs that provide a basis for addressing localized customer preference, customer demand, store space as well as store characteristics.
What is a merchandise plan?
Merchandise planning is a systematic approach to planning, buying, and selling merchandise to maximize your return on investment (ROI) while simultaneously making merchandise available at the places, times, prices and quantities that the market demands.
What is a merchandise planning?
Why is assortment planning needed?
Planning an Assortment provides you with a clear direction as to how to break up the spend to give each and every store a meaningful range, which supports their sales, fits in their space and works to their strengths.
How is assortment plan developed?
Before building an assortment strategy or plan, you have to first analyze each branch and store’s historical sales performance, followed by identifying the latest trends. You are going to study the items required, such as the cost, average selling price, and the lifespan of a batch of products, to name a few.
What do you mean by production planning in manufacturing?
Production planning is the process of deciding how a product or service will be manufactured before the process begins. In other words, it is how you plan to manage your raw materials, employees and the physical space where the manufacturing takes place.
What is the planning horizon for master production?
The Master Production Program, which is developed over a period of time, is called the planning horizon. The planning horizon generally extends between 3 and 18 months, depending on the manufacturing cycles of the item in question. The information or input data feeding the MPS is the following:
What do you need to know about master production schedule?
A standard master production schedule is a long-term plan made for each product separately. It is done with a planning horizon of 3 months to 2 years, with a minimum time bucket (smallest timeframe specified) of 1 week. The basic inputs you need to create a viable master production schedule are the following: 1. Starting inventory.
Do you still need to do production planning?
At that time, if you performed production planning, you must have had a massive business with lots of workers and a huge workflow. Nowadays, the idea that only big manufacturers need or can afford management of their production planning is still very much alive.