How to Plan Your Merchandise Buys

Meanwhile, Category C had 12 percent of the total items, generated 6 percent of the total demand and occupied 16 percent of the total space.

By calculating the relationship between percent of demand to percent of items and percent of space you

can develop a performance index in which 1.0 becomes the standard (or average) upon which to measure the productivity of each category. Indices significantly greater than 1.0 are areas that may warrant increases in product.