Case: PEPE JEANS Questions: Acting as an outside consultant,what would you recommend that Pepe do?Given the data in the case, perform a financial analysis to evaluate the alternatives that you have identified.(Assume that the new inventory could be valued at six weeks' worth of the yearly cost of sales.Use a 30 percent inventory carrying cost rate).Calculate a payback period for each alternative. Option 2 with an ROI of 5 weeks and increased PBT would be the preferred alternative. (ROI financials will not not over) Are there other alternatives that Pepe should consider? I understand the Pepe has a long standing relationship with the agent in Hong Kong. However, I would first look to see what other agents could possibly offer. I know …show more content…
The lead time should be shortened,possibly to as little as six weeks,but costs would increase significantly. Alternative: build a finishing operation in the United
1.3. In order to estimate the peso discount rate, assume that the International Fisher Effect (IFE) holds. Groupe Ariel's Euro hurdle rate for a project of this type was 8%. Assume that inflation rates are expected to be 7% in Mexico and 3% in France.
Thus my recommendation would be for him would involve the utilization of Activity Based Costing to allocate all indirect costs, direct costs, and overall manufacturing time into each and every product he is currently selling. His current method of splitting overhead between each line is inefficient and an incorrect picture of where all his resources are going. Going back to the Wrapped Tumblers example, Giberson would need to allocate more costs towards this product as its high levels of demand are utilizing more resources than he currently realizes. Realizing the true costing amounts of each product in this fashion will allow him to either drop inefficient products or increase/decrease the current prices of his products to match what he is truly spending on them. Given that his business is currently under distress, he also needs to focus on the effects of him completing his custom “made-to-order” products as they will bring in further revenue since manufacturing capacity is not at
Approve more funds to hire more resources, unclear how many will be needed to gain this amount of time from the duration.
MILLERSBURG — After entering a guilty plea to an amended charge of voluntary manslaughter, Bobbi Amos-Camacho on Wednesday was sentenced to 11 years in prison for killing Jimmy Rowe Jr. in November.
Company is facing a challenge of potentially higher inventory costs. Rising prices may further result in changes in customer behavior and preferences.
Improve inventory days. This is part of Horniman’s business; it is unclear whether the inventory can be improved, particularly if they are moving to more-mature plants. The analysis to make this trade-off is similar to that of the payables policy. One would divide the expected margin gain by the increase in inventory levels to compute a marginal return on capital. One additional level of concern is the substantial additional risk associated with increasing inventory when facing uncertainty with respect to the effects of interest rates and adverse weather.
The interviews did save us some money- not having to pay for the candidates travel or paying for REP traveling to meet them. Also if we did not use BlueJeans we would have the candidates or the agencies find a place to connect via video conference which we would incur that cost.
Considering these above mentioned features, to take over the company, it is essential for Joe Jr. to take due attention to a proper approach for inventory management, calculate an appropriate inventory level for each product, making it in line with the company’s business strategy, the market demand in the upcoming period:
In the past, the booming economy had allowed for year to year increase in their sales because people had larger discretionary incomes. But due to the recession, smaller independent retailers had to markdown their items in order to stay in business because designer outlet stores are getting more traffic; so will Harry Rosen follow in suit? Or in order to maintain the integrity of the quality products they offer, will they continue their higher pricing and settle for a lower market share?
When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.
In this case study, production and operations management (POM) issues of a mid-size company, named as Scientific Glass Inc., in a highly growing market are studied. Using the background information on past actions of the company to correct inventory management and their results, and considering the market leadership opportunity, how inventory management approach can be made better is explained by evaluating different alternatives from different aspects. In the first part, critical POM issues are mentioned, following that these problems are analyzed. In the third part, alternative options are listed and then they are evaluated. Finally, considering
Linda should follow the fourth alternative where the total cost involved is the most appealing factor economically to the organization. Even though there is a huge amount held in inventory holding costs, this will definitely help later when there is a sudden change in the forecasted demand
The ups and downs of the premium jeans industry and the constant fluctuating of threats to the industry made it interesting to see how the denim lines would respond. They were originated in the 1970s by Calvin Klein who created highly priced, skin tight jeans who used celebrities (i.e. Brooke Shields) to endorse the product. Since they were higher priced compared to your common, regular blue jeans sold by mainstream brands like Lee and Wrangler, they were meant to serve as fashion statements as opposed to comfort. They started off well in early on in the 1980s, but then hit a decline just a few years later. The mid 1990s came and they surpassed their highest annual sales in
Lately, Mr. Milligan has become concerned with his inventory management methods. he now wants to better manage his inventory. As a starting point, he wants to examine his costs, sales, markup percentages, gross profits, and inventory levels. He asks you to review his inventory and make suggestions for improvement. He provides you with the data and asks you to prepare an Inventory Analysis worksheet.
Tasks: What should Alison do? o Develop plans to improve the inventory management o Develop time-based supply strategies to bring competitive advantages to the organization Identify the functions and forms of inventory What are alternatives for inventory management? o ABC classification o Supplier-managed inventories (SMI) o Just-on-time or Just-in-time (JIT) o Enhance the forecasting system (factor correlated with inventory variation) Provide training programs for current and new hiring employees 1