Wings is a small children's outerwear manufacturer based in Chicago. Wings’ mission is to make a profit providing appealing, comfortable, value priced children's outerwear. Wings has $14.5 million in annual retail sales and $15 million in (annual) planned purchases @ retail based on 3 selling seasons: spring, back-to-school, and winter. Merchandise classes include infants (15% of sales), preschool (20% of sales), boys (25% of sales) and girls (40% of sales). Wings’ largest customer is JCPenney. An EDI system is in place to provide supply chain to the JCPenney account. You are a designer's assistant employed by Wings. You are responsible for developing a merchandise plan for boy's jackets for back-to-school 2019. The back-to-school selling period represents 70% of sales for boys. Jackets represent 90% of boy's back-to-school sales at an average list price of $60. The economy is strong and Wings is expecting a 10% increase in sales for 2019. Wings uses keystone markup for list price. What are planned sales for boys jackets for back-to-school 2019? How many units of boys jackets would you expect Wings to include in the merchandise plan for back-to-school 2019? The assortment factors that Wings considers when planning model stocks for assortments are style, size, and color. Wings makes boys jackets in 8 sizes. If SKUs are not going to exceed 300, what is the maximum number of styles that can be included in the assortment? (Assume that you will only use one color.) Recent selling seasons have shown that color is at least as important an assortment factor as style. Given that information, a reasonable plan for a model stock with a maximum of 300 SKUs would be 6 styles, 6 colors, 8 sizes. Is it true or false?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Mini Case-1

Wings is a small children's outerwear manufacturer based in Chicago. Wings’ mission is to make a profit providing appealing, comfortable, value priced children's outerwear. Wings has $14.5 million in annual retail sales and $15 million in (annual) planned purchases @ retail based on 3 selling seasons: spring, back-to-school, and winter. Merchandise classes include infants (15% of sales), preschool (20% of sales), boys (25% of sales) and girls (40% of sales). Wings’ largest customer is JCPenney. An EDI system is in place to provide supply chain to the JCPenney account.

You are a designer's assistant employed by Wings. You are responsible for developing a merchandise plan for boy's jackets for back-to-school 2019. The back-to-school selling period represents 70% of sales for boys. Jackets represent 90% of boy's back-to-school sales at an average list price of $60. The economy is strong and Wings is expecting a 10% increase in sales for 2019. Wings uses keystone markup for list price.

What are planned sales for boys jackets for back-to-school 2019?

How many units of boys jackets would you expect Wings to include in the merchandise plan for back-to-school 2019?

The assortment factors that Wings considers when planning model stocks for assortments are style, size, and color. Wings makes boys jackets in 8 sizes. If SKUs are not going to exceed 300, what is the maximum number of styles that can be included in the assortment? (Assume that you will only use one color.)

Recent selling seasons have shown that color is at least as important an assortment factor as style. Given that information, a reasonable plan for a model stock with a maximum of 300 SKUs would be 6 styles, 6 colors, 8 sizes. Is it true or false?

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