Pepe jeans Essay

The company maintains mop up with its independent retailers via group of 10 agents and all(prenominal) agent is responsible for retailers in a particular area of the country. Pepe is convinced that a good relationship with the independent retailers is bouncy to its success. Pepes requirement to place firmly orders six months in advance with no possibility amendments, cancellation, or repeat ordering. somewhat claimed that the inflexible order system agonistic them to order less, resulting in stock outs.Pepe matte that a change was going to be needed soon. The easiest solution would be formulate with the Hong Kong sourcing agent to reduce the lead clock associated with orders but this was going to increase the monetary value significantly. Even with the significant increase in greet, consistent delivery schedules would be uncontrollable to keep. Another suggestion was to build a finishing operation in unify terra firma.Pepe was interested to see how system worked at U. S. operations. They found that they would have to keep about(predicate) six weeks supply of basic jeans on hand in the United Kingdom and they have to invest ? 1,000,000 worth of equipment. They alike estimated that it would cost about ? 500,000 to operate the speediness each year. They could locate the facility in the basement of current office building, and the renovations would cost ? 300,000.