PEPE JEANS - CASE STUDY 1. 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. Pepe Jeans has 3 options: Do nothing Decrease lead time to 6 weeks Build a factory and
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Case: Pepe Jeans Pepe Jeans began to produce and sell denim jeans in the early 1970s in the United Kingdom and has achieved enormous growth. The company maintains contact with its independent retailers via group of 10 agents and each agent is responsible for retailers in a particular area of the country. Pepe is convinced that a good relationship with the independent retailers is vital to its success. The survey of the independent retailers indicated some problems. It was felt that Pepe’s variety
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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 value at six weeks worth of the yearly cost of sales. Use 30 percent inventory carrying cost rate). Calculate a payback period for each alternative. Jawab: Berdasarkan data yang diperoleh dari kasus Pepe Jeans‚ masalah yang timbul adalah Pepe Jeans menetapkan waktu 6 bulan untuk pemesanan terhadap
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Acting as an outside consultant‚ what would you recommend that Pepe do? Give 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 as six week;s worth of the yearly cost of sales. Use a 30 percent inventory carrying cost rate.) Calculate a pay-back period for each alternative. In this case‚ Pepe Jeans has enjoyed considerable financial success with its current business model. However‚ on the other
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Pepe Jeans Case The main advantage of Pepe not carrying inventory is obviously the cost savings‚ as it is usually not efficient or cost effective for that matter‚ to carry excess inventory. The downside is not having enough pairs of jeans on hand to ship to stores when demand is high. An inventory would help alleviate this. The six month lead time is both an advantage and disadvantage for Pepe. The long lead time is positive in that once a retailer places an order‚ they only have a week to
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Financial Analysis Retailers estimated that Pepe Company would increase its sales by about 10% by using a flexible ordering system. Now the current sales are £ 200‚000‚000. Hence 10% of £ 200‚000‚000 is £ 20‚000‚000. Thus a flexible system would lead an increase in sales of £ 20‚000‚000. Profit before taxes (PBT) at the rate of 32% would lead to an increase in in PBT of £ 6‚400‚000 (32% of £ 20‚000‚000). Alternative 1: Decrease in lead time would lead to an increase in costs by 30%.Currently
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BUS 5320: Enterprise Relationship Management Dr. Michael Graney-Mulholland Ehsan Shafaee Executive Summary In this case‚ Pepe Jeans is able to eliminate the 10 independent agents and directly work with the independent retailers. This will result in cutting its lead time from six months to six weeks or less. The retailers are able to log-in into Pepe’s system and put in their orders‚ from then the ERP provides a software road map for automating the different steps along the path to fulfill
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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
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Chain Management – Sourcing Final Examination (Take Home) Case: Pepe’s Jeans 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% inventory carrying cost rate. Calculate a payback period for each alternative. Are there other alternatives that Pepe should
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1. Introduction This report focuses on the case studies of the Levi Jeans workers and the California Auto Club reengineering customer service. It looks at operations management as a source for gaining a competitive advantage and overcoming potential problems experienced within and organisation or workplace. The questions to be reviewed are as follows: Jeans Therapy - Levi’s factory worker are assigned to teams‚ and morale takes a hit: 1. What went wrong with Levi’s move to teams in their plants
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