Which of the following does not describe appropriate space management?

A. High turnover items need to be restocked more frequently to avoid stockouts.
B. A retailer overallocates space to some low-productivity categories such as milk because an extensive assortment in these categories attracts customers to the store and positively affects the sales of categories with higher GMROIs.
C. Merchandise categories with high GMROI merit more space than merchandise categories with lower GMROI do.
D. Less space is allocated to fast-selling merchandise to allow more shelf space to encourage sales of slower-moving items.
E. A retailer overallocates space to categories purchased by their platinum customers, the customers with the highest lifetime value.


Answer: D

Business

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