Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that your department is selling sweatshirts. From market research you realize that most of your customers for this product are not brand loyal. They

Assume that your department is selling sweatshirts. From market research you realize that most of your customers for this product are not brand loyal. They will substitute one brand for another if you have the right size, color, and style they are looking for.
Past sales records indicate that Russell has been the most popular brand with your customers, and your merchandise buying plan indicates that you have $3,000 to spend on sweatshirts for the coming season.
You decide to stock only Russell sweatshirts costing $10 each.
You need to calculate how many sweatshirts you can purchase.
You must then calculate the specific unit (size and color) breakdown of the sweatshirts.
Russell has these sweatshirts in sizes from extra small to extra-extra large in twenty different colors.
They also are available in 100 percent cotton or a polyester/cotton blend. Hooded and nonhooded sweatshirts are also available
By examining past sales records, you determine that for the sweatshirts you will buy, the size distribution of your customers has been as follows:
Small 15%
Medium 20%
Large 45%
X-Large 20%
Basic colors of white and gray have been your best sellers in the past, accounting for 20 percent and 35 percent of sales, respectively, so you will maintain that distribution strategy.
Black has been a good seller too, with 15 percent of sales. You decide to supplement these first three colors with two other colors (green and garnet) that are predicted to be very fashionable for the Fall. Each of these will represent 15 percent of your assortment plan.
At this point, you decide to calculate the number of sweatshirts that you will purchase for each of the sizes and colors selected. By using the chart as a starting point (smalls are already figured for you), fill in the rest of the distribution/allocation. You can choose to do this on a separate excel spreadsheet and or finish by keep using the chart format below.
To receive full credit, you must show your work (embed formulas) as to how you calculated steps 1 and 2 above. 1- Total sweatshirt quantity and 2- Breakdown by quantity, size and color.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management A Managerial Approach

Authors: Jack R. Meredith, Samuel J. Mantel,

7th Edition

470226218, 978-0470226216

More Books

Students also viewed these General Management questions