HUGO BOSS Companies can define the range of products offered in company-owned channels while this can...

 

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HUGO BOSS Companies can define the range of products offered in company-owned channels while this can be influenced in controlled distribution channels or in relation with independent retailers rather hardly. Looking at HUGO BOSS, the range of products varies in accordance with its formats and the corresponding sales area. While nearly the full production program is available in flagship stores, the number of articles is lower in the specialized direct operated stores. Furthermore, HUGO BOSS can decide about the configuration of products and focus on target groups, e.g. by offering only products of a special line. Additional, is the possibility to influence the store layout and location of company-owned channels in accordance with the intention of the store format. Flagship stores can deliver the full brand experience through im-pressive visual merchandising. HUGO BOSS utilizes flagship stores to build brand image and to showcase the manufactured products in a high-quality presentation. But prime locations, merchandising, and the personnel to grant attentive service are expensive. Even though high investments and costs are inevitable, HUGO BOSS' directly operated stores in three different locations: in UK with capacity 12000 units and its location (9,12) at 5$ DC to all destinations, in Germany with capacity 19000 units and its location (51, 48) at 7S DC to all destinations, and in France with capacity 11000 unit and it location (39, 45) at 9 S DC to all destinations. The company aims to meet the demand of four markets. This includes China with demand 15000 units (location 61, 72) at 4SDC in case of intermediate, India with demand 14000 units (location 75, 91) at 10SDC in case of intermediate, Croatia with demand 11000 units (location 24, 27) at 3SDC in case of intermediate, and UAE with demand 2000 units (location 45, 47) at 7SDC in case of intermediate. This attracts millions of consumers every year thus making an enormous contribution to HUGO BOSS brand image and brand value respectively. Moreover, other retailers may be attracted to carry the brand in their own stores. On the contrary, HUGO BOSS factory outlet stores are intended to sell overstock and close-out merchandise. The price-orientation makes the store layout less important, and investments can be cut down to the minimum necessary. BOSS can experiment with product attributes and derive customer's needs in a very efficient way. As the company is able to identify customer preferences directly from retail activities, these insights can be taken into consideration in the production process. Because contact is direct and immediate, HUGO BOSS can acquire valuable consumer insights and better adapt the products on what customers really want instead of solely depending on the retailer to provide such information. Questions 1. Design a distribution network and generate an answer report to determine the flow of goods between suppliers and markets. 2. In order to minimize total distribution costs, design a facility location model to determine the right location of establishing a distribution center. 3. Is it feasible to shut down one supply markets to minimize total costs if you know that the fixed costs are as follows: UK (16000 $), Germany (15000 S), and France (13000S)? Generate an answer report to shows your results. HUGO BOSS Companies can define the range of products offered in company-owned channels while this can be influenced in controlled distribution channels or in relation with independent retailers rather hardly. Looking at HUGO BOSS, the range of products varies in accordance with its formats and the corresponding sales area. While nearly the full production program is available in flagship stores, the number of articles is lower in the specialized direct operated stores. Furthermore, HUGO BOSS can decide about the configuration of products and focus on target groups, e.g. by offering only products of a special line. Additional, is the possibility to influence the store layout and location of company-owned channels in accordance with the intention of the store format. Flagship stores can deliver the full brand experience through im-pressive visual merchandising. HUGO BOSS utilizes flagship stores to build brand image and to showcase the manufactured products in a high-quality presentation. But prime locations, merchandising, and the personnel to grant attentive service are expensive. Even though high investments and costs are inevitable, HUGO BOSS' directly operated stores in three different locations: in UK with capacity 12000 units and its location (9,12) at 5$ DC to all destinations, in Germany with capacity 19000 units and its location (51, 48) at 7S DC to all destinations, and in France with capacity 11000 unit and it location (39, 45) at 9 S DC to all destinations. The company aims to meet the demand of four markets. This includes China with demand 15000 units (location 61, 72) at 4SDC in case of intermediate, India with demand 14000 units (location 75, 91) at 10SDC in case of intermediate, Croatia with demand 11000 units (location 24, 27) at 3SDC in case of intermediate, and UAE with demand 2000 units (location 45, 47) at 7SDC in case of intermediate. This attracts millions of consumers every year thus making an enormous contribution to HUGO BOSS brand image and brand value respectively. Moreover, other retailers may be attracted to carry the brand in their own stores. On the contrary, HUGO BOSS factory outlet stores are intended to sell overstock and close-out merchandise. The price-orientation makes the store layout less important, and investments can be cut down to the minimum necessary. BOSS can experiment with product attributes and derive customer's needs in a very efficient way. As the company is able to identify customer preferences directly from retail activities, these insights can be taken into consideration in the production process. Because contact is direct and immediate, HUGO BOSS can acquire valuable consumer insights and better adapt the products on what customers really want instead of solely depending on the retailer to provide such information. Questions 1. Design a distribution network and generate an answer report to determine the flow of goods between suppliers and markets. 2. In order to minimize total distribution costs, design a facility location model to determine the right location of establishing a distribution center. 3. Is it feasible to shut down one supply markets to minimize total costs if you know that the fixed costs are as follows: UK (16000 $), Germany (15000 S), and France (13000S)? Generate an answer report to shows your results.

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Introduction HUGO BOSS a renowned fashion brand employs a distribution strategy that varies across different channels and locations The companys distr... View the full answer