Question
Ms. Gebel is the owner of Pink Flower, a local boutique. She stocks two major product lines, a line of jeans and a line of
Ms. Gebel is the owner of Pink Flower, a local boutique. She stocks two major product lines, a line of jeans and a line of dresses. She wants to understand how the line have performed in the past in terms of GMROI and how future performance can be improved. She has the following information:
Jeans ($) | Dresses ($) | |
Net sales | 200,000 | 100,000 |
COGS | 100,000 | 50,000 |
EOM inventory Jan | 15,000 | 30,000 |
EOM inventory Feb | 20,000 | 25,000 |
EOM inventory Mar | 15,000 | 25,000 |
- Using the information in the table above, please calculate the following. Dont forget to show your work.
- Gross margin percentage for both lines
- Average inventory at cost for both lines
- Sales-to-stock ratio for both lines
- GMROI for both lines
- Inventory turnover for both lines
- If Ms. Gebel wants to improve the GMROI for the line of dresses, what can she do?
- Suppose Ms. Gebel is considering several new vendors for a line of menswear. She gives you the information in the table below and asks you to choose a vendor based on the multiattribute analysis method. Please show your work and answer the question below.
- Which vendor should she choose? Why?
Issues | Importance of Issues | Brand A | Brand B | Brand C | Brand D |
Vendor reputation | 9 | 6 | 7 | 3 | 5 |
Merchandise quality | 8 | 6 | 5 | 3 | 9 |
Product fashionability | 7 | 6 | 4 | 8 | 8 |
Service | 6 | 6 | 7 | 9 | 5 |
Promotional assistance | 5 | 6 | 7 | 8 | 5 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started