Dealing With A Ski Apparel Company

The product management team asks you for an analysis of the stock-out probabilities for various order quantities, an estimate of the profit potential, and to help make an order quantity recommendation. Specialty expects to sell Weather Teddy for $24 based on a cost of $16 per unit. If inventory remains after the holiday season, Specialty will sell all surplus inventory for $5 per unit. After reviewing the sales history of similar products, Specialty’s senior sales forecaster predicted an expected demand of 20,000 units with a .95 probability that demand would be between 10,000 and 30,000 units.

When manifold line was dropped, the situation of 1991 in comparation to 1990 was similar to the situation of 1988 in comparation to 1989. Assume that the change of the overhead per the change of labor cost of 1988 and 1989 was the situation of 1990 and 1991 and was not changed equal to 2.7 (see table 5). Assume that the direct labor cost of 1991 for the product dropped manifolds was the direct labor cost of that product in 1990 (see table 5). The total direct material of 1991 was $33,821 (see table 6), the direct labor was $7,562; the total overhead was $61,741 and the rate of overhead per direct labor was 816% (see table 5).

With the implementation of minimum wage and rising production costs in the United States, many companies have found themselves looking for a way to save money on production. Clothing manufacturers such as Nike have used labor forces in other countries, mainly in Asia to produce their products. These countries can offer similar quality labor for a cheaper cost on wages. The lower or non existent minimum wage laws in foreign countries allow companies like Nike to cut production costs drastically, while still being able to produce quality products. Similar trends are starting to creep into software companies. They are finding a workforce able to do similar work as the American workers, but for less pay.

14. A decision to work closely with a limited number of suppliers for the purpose of ensuring that the proper materials are available at the optimal time is an example of:

• The enormous surplus of labor in China imperils workers worldwide as international competition puts incessant downward pressure on wages and working conditions, leading the apparel and textile industries to favor the cheapest and most Draconian producers.

We will continue to employ the 10% production over projection strategy to meet the increase in demand in most of our regions. However product availability levels last year if higher, still could have obtained larger market shares, in particular, in our North American market where there was a slight decline in market shares. This year, we expect those demand levels to decrease slightly, due to the exchange rates in the other regions and more competitive pricing from our

The purpose of this term paper is to discuss the similarities and differences between Talbots Inc. ("Talbots") and Chico's FAS Inc. ("Chico's"). This paper will detail the nature of each company's respective business, past financial performance, and expected future outlook. The paper is divided into two sections. The first section will discuss each company's history, business structure, and future plans independently from each other. The second section will discuss several important financial ratios and provide a detailed analysis comparing the two companies. By the end of this analysis, the reader will have a better understanding of these two retailers and the industry in which they operate.

According to the case we know that labor costs in china may have a big increase in the next 10 years, from 40% totally to 10% annual increase to even 40% annual increase.

Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week.

Using the sample data given in Table 2-20, make a recommendation for how many units of each style Wally should make during the initial phase of production. Assume that all of the 10 styles in the sample problem are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. Ignore price differences among styles in your initial analysis.

showed Mrs. Carter the job estimation sheet, it laid out the numbers showing that Lambeth could not do the job for less than $1,625. Right there Lambeth would lose $125 since Mrs. Carter was not willing to pay any more than $1,500, not to mention their $275 profit. If the company would have taken the job for $1,500, instead of $1,900, they would have lost a total of $400.

American Apparel, is an American multi-national clothing manufacturer, distributor and retailer since 1988based in Los Angeles, California. Dov Charney, a Canadian business man was a founder and former CEO of the company. He was involved in nearly every part of the business process from design and manufacturing to marketing. The Ernst & Young named Charney Entrepreneur of the Year in 2004. He was also termed "Man of the Year" by various fashion

Even after 2 weeks it could not fulfill V-shopper’s order. This was due to the poor floor layout and assembly table layout. The demand could not be forecasted and resulted in stock outs and expedition. Even though, the demand pattern for seasonal sales was predictable, it was difficult to predict the sales for huge discounts. This could be the Bull-Whip effect.

The retail company has two upcoming fashion shows that they can be involved in. One is in New York and will be a two day long project. The price for this fashion show is going to be $3,000 more than the second project that would be located in Chicago. Each fashion show is going to bring in the same amount of

Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm's output is $32. The cost of other variable inputs is $2,000 per day. It also tells us that the firm's fixed cost is “high enough” so that the firm's total costs exceed its total revenue. The marginal cost of the last unit is $30.