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In: Business and Management

Submitted By anumbutt
Words 567
Pages 3
Question no.1
Return On Invested Capital Calculation Profitability wholesale channel = profitinvestment = 4$13$ = 0.307

Profitability OLS channel estimate = profitinvestment = 6$38$ = 0.1578 ( this channel is profitable)

Question no.2
Impact of Personal Pair on Value chain * Demand Forecasting
Personal pair would impact positively on this element of value chain. As the purchasing of the jeans by the customers would help company how they can allocate budget for future. * Market Research
By doing market research we can better understand the preferences of the customers. Afterwards we can make improvements in our system accordingly. * Production Planning
Production Planning would be done efficiently as recorded order in the device would let the company arrange sufficient raw material and other necessary items for the manufacturing of jeans. * Raw Material Logistics
Raw material logistics would be the same both for pull based (Personal Pair system) and push based strategy of the company. * Production
Production would be according to the order. There won’t be wastage of raw material. * Factory Warehousing
It will get removed because the order would be recorded and then transmitted by modem to CCTC and from it will be directly transmitted to the factory.

* Shipping
It will remain the same because the company will have to ship the order to its destination whether it’s in push or pull based strategy. * Distribution Warehouses
The warehouses would be of no use in this system because of the order transmission to CCTC then to the factory. * Retail Outlets
Currently PPS is operating in four retail outlets it’s attractive for customers because they can come and order the jeans according to their preferences i.e. customization. * Sales & Promotion
The company would promote…...

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