1. merchandising
EOPA Study Guide

2. Role of Distribution/channel management
physical distribution is the group of activities associated with the supply of finished product from the production line to the consumers.
It accounts for half of the marketing budget.
activities are often the focus of process improvement and cost-saving initiatives in many companies.
key functions within the physical distribution system are:
Customer service
Order processing
Inventory control
Transportation and logistics
Packaging and materials

3. Distribution/Channel management
The role of distribution to ensure continuity of the flow of goods consists of: [5] • achieving optimal correlation and synchronization between supply and demand - by providing customers the products when (and where) they want; • changing of the appearance or composition of the supply to make it more attractive to users through operations of bottling, packaging, packaging, etc.; • changing the physical possession of goods - their ownership transfer from manufacturers and distributors to consumers; • moving the product to place of demand - through rational organization of the physical flow of goods; • minimizing costs, making at the disposal of the consumer the desired product

4. Channel management/distribution
Channel members are: producer, wholesaler, agent, broker, retailer and final consumer
Cost increase the more channel members in the pathway.
Channel members are also called middle men

5. Advantages & disadvantages of types of inventory control systems
Periodic Inventory
LIFO Method
FIFO Method
HIFO Method
FISH Situation
Just In Case (JIC) Method
Just In Time (JIT) Method
Perpetual Inventory Systems
Supply and Demand
Inventory Turnover
Go to power point on inventory

6. shrinkage Causes of inventory shrinkage: Reducing inventory shrinkage:
Employees theft
Placement-Product placement within the retail location is an important method used to reduce the loss of the most valuable items. 
Inaccuracies: counting and paperwork
Obsolete- no longer have value
Damage
Reducing inventory shrinkage:
Educate and train employees properly. Run training and loss-prevention programs which clearly discuss the implications of theft with employees, such as limited pay increases, fewer opportunities for promotion, and layoffs due to the company’s financial instability
Secure your storeroom. The easiest way to reduce the risk of employee theft is to restrict access to your inventory. Only those employees directly involved with handling inventory should have access to inventory areas. If you have some goods that are particularly valuable, consider further restricting access to the areas where these are kept.[4]

7. Inventory shrinkage
Tighten your receiving practices. The receiving area of a warehouse is where a large amount of inventory theft takes place. Employees might mark shipments as short or spoiled when they are not and claim the good for themselves. You can prevent this by requiring an inspection of spoiled or damaged goods before they are thrown out. You should also have an employee that works outside of receiving perform these inspections, along with a recount of the items received
Install surveillance cameras.
Monitor valuables closely
Separate duties among more than one employee. Don’t allow the same person to handle inventory management, processing of receipts, and recording of receipts. 

8. purchasing
The activity of acquiring goods or services to accomplish the goals of an organization. The major objectives of purchasing are to (1) maintain the quality and value of a company's products, (2) minimize cash tied-up in inventory, (3) maintain the flow of inputs to maintain the flow of outputs, and (4) strengthen the organization's competitive position. Purchasing may also involve (a) development and review of the product specifications, (b) receipt and processing of requisitions, (c) advertising for bids, (d) bid evaluation, (e) award of supply contracts, (f) inspection of good received, and (g) their appropriate storage and r