Branded Shipping Decisions
The shipping decisions screen entails 4 entries for each plant—all involve how many of the newlyproduced branded pairs to ship to each of the four distribution warehouses. Every pair produced must be
shipped to one of the four warehouses; no finished goods are ever warehoused at plants. As you enter the
pairs to be shipped from the company's plants to the company's regional warehouses, there’s information
in the bottom half of the screen showing the weighted average S/Q ratings and model availabilities of all
pairs (including leftover inventories) available for sale in the distribution warehouse serving each region
and how these compare with the S/Q ratings and model availabilities entered on the branded sales
forecast screen. You’ll get a message in red on the screen anytime the S/Q ratings and model
availabilities resulting from your shipments are not synchronized with the sales forecast. To achieve
synchronization you can adjust shipments or you may need to alter some of the entries on the branded
production screen or you can revise the entries on the sales forecast screen.
The Importance of Good Inventory Management. Because the forecasts of branded sales in each
geographic region are not a guarantee of actual sales (since the actions and competitive efforts of rivals to
gain sales and market share cannot be fully anticipated and since actual market growth can turn out to be
anywhere in the forecasted range), there’s merit in maintaining surplus inventory over and above the pairs
required to fill retailer orders within the desired delivery times of 1, 2, 3, or 4 weeks (as entered on the
branded sales forecast screen). Information on this screen reports the minimum inventories required to
achieve delivery times. The size of the inventory requirement is a function of delivery times, annual sales
volume, and the number of models available for sale in the region. The number of pairs required to be in
inventory at all times ranges from as low as 1% of annual sales (with 4-week delivery and model
availability of 50) to as high as 15% of sales (with 1-week delivery and model availability of 500).
In no instances will you be allowed to even temporarily use some of the required pairs in inventory to fill
unexpectedly large orders from retailers or individuals buying online. Because the inventory requirement
number is an absolute minimum, you and your co-managers may want to maintain an inventory surplus in
each regional warehouse to fill orders higher than the projected sales volumes. Without a surplus to fill
any orders above the projected branded sales volume, the sales will be lost and buyers will take their
business to other footwear companies. Further more, any projected inventory shortfalls on the screen
thus represent potential lost sales due to insufficient distribution warehouse inventory.
At the other extreme, allowing surplus inventories to mushroom out of control is costly in two respects.
One, inventory storage costs on carrying surplus inventory over from one-year to the next runs $1.00 per
pair (handling and storage of required inventory entails annual costs of $0.50 per pair). Two, there is a 1-
star penalty applied to the S/Q rating of unsold branded pairs carried over to the following year—this
penalty, which is part of the IFF’s S/Q rating formula, is to reflect the fact that unsold pairs are last-year’s
models and styles, making them less attractive to buyers. (The 1-star penalty is already factored into the
S/Q ratings reported on the branded shipping screen.) You and your co-managers are thus well advised to
exercise prudent inventory management practices.
Exchange Rate Cost Adjustments. The exchange rate cost adjustments on incoming shipments
shown in the middle of the screen merit your attention. Producing footwear in one geographic region and
exporting it for sale in another region entails upward or downward adjustments in the production costs of
shipments coming into a particular distribution from a foreign plant. A positive number for a region
represents an adverse exchange rate adjustment that has the effect of raising the per pair costs of
incoming footwear shipments (which can impair profit margins on sales in that region); a negative number
for a region represents a favorable change in the exchange rates that effectively lowers the per pair costs
of incoming shipments (which can boost the profitability of sales in that region). It is important to
understand that any time the sizes of the per pair cost adjustments are large, you should experiment
with different cross-region shipping patterns to minimize the cost effects of unfavorable
adjustments and maximize the cost effects of favorable adjustments. For a more detailed discussion
of exchange rate cost adjustments, click the Help button at the top of the screen.
Distribution and Warehouse Expenses. Details of the company’s distribution and warehouse
expenses are shown toward the bottom of the branded shipping screen. Packing and freight costs on
shipments of newly-produced footwear from a plant to a warehouse in the same region currently run $1 per
pair. Packing/freight costs on plant shipments to warehouses in a different region run $2 per pair. These
costs are subject to change in upcoming years. Any tariffs on pairs imported are due and payable at the
port of entry rather than when orders are filled and the pairs shipped to retailers and online buyers. I
Branded Shipping Decisions
The shipping decisions screen entails 4 entries for each plant—all involve how many of the newlyproduced branded pairs to ship to each of the four distribution warehouses. Every pair produced must be
shipped to one of the four warehouses; no finished goods are ever warehoused at plants. As you enter the
pairs to be shipped from the company's plants to the company's regional warehouses, there’s information
in the bottom half of the screen showing the weighted average S/Q ratings and model availabilities of all
pairs (including leftover inventories) available for sale in the distribution warehouse serving each region
and how these compare with the S/Q ratings and model availabilities entered on the branded sales
forecast screen. You’ll get a message in red on the screen anytime the S/Q ratings and model
availabilities resulting from your shipments are not synchronized with the sales forecast. To achieve
synchronization you can adjust shipments or you may need to alter some of the entries on the branded
production screen or you can revise the entries on the sales forecast screen.
The Importance of Good Inventory Management. Because the forecasts of branded sales in each
geographic region are not a guarantee of actual sales (since the actions and competitive efforts of rivals to
gain sales and market share cannot be fully anticipated and since actual market growth can turn out to be
anywhere in the forecasted range), there’s merit in maintaining surplus inventory over and above the pairs
required to fill retailer orders within the desired delivery times of 1, 2, 3, or 4 weeks (as entered on the
branded sales forecast screen). Information on this screen reports the minimum inventories required to
achieve delivery times. The size of the inventory requirement is a function of delivery times, annual sales
volume, and the number of models available for sale in the region. The number of pairs required to be in
inventory at all times ranges from as low as 1% of annual sales (with 4-week delivery and model
availability of 50) to as high as 15% of sales (with 1-week delivery and model availability of 500).
In no instances will you be allowed to even temporarily use some of the required pairs in inventory to fill
unexpectedly large orders from retailers or individuals buying online. Because the inventory requirement
number is an absolute minimum, you and your co-managers may want to maintain an inventory surplus in
each regional warehouse to fill orders higher than the projected sales volumes. Without a surplus to fill
any orders above the projected branded sales volume, the sales will be lost and buyers will take their
business to other footwear companies. Further more, any projected inventory shortfalls on the screen
thus represent potential lost sales due to insufficient distribution warehouse inventory.
At the other extreme, allowing surplus inventories to mushroom out of control is costly in two respects.
One, inventory storage costs on carrying surplus inventory over from one-year to the next runs $1.00 per
pair (handling and storage of required inventory entails annual costs of $0.50 per pair). Two, there is a 1-
star penalty applied to the S/Q rating of unsold branded pairs carried over to the following year—this
penalty, which is part of the IFF’s S/Q rating formula, is to reflect the fact that unsold pairs are last-year’s
models and styles, making them less attractive to buyers. (The 1-star penalty is already factored into the
S/Q ratings reported on the branded shipping screen.) You and your co-managers are thus well advised to
exercise prudent inventory management practices.
Exchange Rate Cost Adjustments. The exchange rate cost adjustments on incoming shipments
shown in the middle of the screen merit your attention. Producing footwear in one geographic region and
exporting it for sale in another region entails upward or downward adjustments in the production costs of
shipments coming into a particular distribution from a foreign plant. A positive number for a region
represents an adverse exchange rate adjustment that has the effect of raising the per pair costs of
incoming footwear shipments (which can impair profit margins on sales in that region); a negative number
for a region represents a favorable change in the exchange rates that effectively lowers the per pair costs
of incoming shipments (which can boost the profitability of sales in that region). It is important to
understand that any time the sizes of the per pair cost adjustments are large, you should experiment
with different cross-region shipping patterns to minimize the cost effects of unfavorable
adjustments and maximize the cost effects of favorable adjustments. For a more detailed discussion
of exchange rate cost adjustments, click the Help button at the top of the screen.
Distribution and Warehouse Expenses. Details of the company’s distribution and warehouse
expenses are shown toward the bottom of the branded shipping screen. Packing and freight costs on
shipments of newly-produced footwear from a plant to a warehouse in the same region currently run $1 per
pair. Packing/freight costs on plant shipments to warehouses in a different region run $2 per pair. These
costs are subject to change in upcoming years. Any tariffs on pairs imported are due and payable at the
port of entry rather than when orders are filled and the pairs shipped to retailers and online buyers. I
การแปล กรุณารอสักครู่..
