Design your plan that addresses the following business strategy:
You are the supply chain manager for a women's apparel retail business that will sell a line of fashion for $30. The business strategy to WIN at retail is to provide fashionable clothing in styles and colors that were sold last year in Paris. Products should have gross margins slighlty higher than than the industry average of 70%. Additionally, the company wants to reduce its markdown and promotional spendiing to insure an internal margin on the new apparel assortment of 64%. The low cost provider is located in China and the high cost provider is located in Guatemala. Your landed apparel cost in Long Beach, California from China is $7.25. Landed cost into the Port of Houston is $8.25. Lead time from China to port of entry is 5 weeks, and 3.5 weeks from Guatemala to the Houston port of entry.
The CEO indicates that she would like to be able to assess actual sales and sell-through probability and to respond to consumer demand at least 2 weeks before peak selling occurs. The company has 100 retail outlets across the U.S. with 25% of the stores in top selling markets, 35% of stores in smaller cities, and the remaining stores are in suburbs and rural districts. Initial plan is to purchase 2500 pieces each of 5 different styles/colors.
You are asked to submit your plan (not more than 2 pages, single space) in writing addressing how you would design the system and metrics to support the selling strategy and financial plan.