What is the purpose of merchandise and assortment planning in SAP IS-Retail?

Merchandise and assortment planning in SAP IS-Retail play a crucial role in optimizing the retail operations and increasing sales. The primary purpose of merchandise planning is to ensure that the right products are available at the right time, in the right quantities, and at the right prices to meet customer demand. This involves forecasting demand, setting inventory levels, and determining pricing strategies to maximize profitability.

Assortment planning, on the other hand, focuses on creating a well-curated selection of products that appeal to the target customer segment. It involves analyzing sales data, market trends, and customer preferences to create a product assortment that drives sales and enhances the shopping experience.

By effectively managing merchandise and assortment planning in SAP IS-Retail, retailers can improve inventory turnover, reduce stockouts, increase sales and margins, and ultimately deliver a more satisfying shopping experience for customers.