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Graded Assignment 1: Fast Fashion Retailer
Graded Assignment 1: Fast Fashion Retailer
The Fast Fashion Group (FFG) is a fast fashion retailer company located in Spain and is one
of the largest retailers in the country (their overall sales has grown by about 50% in five
years). FFG sells clothes and accessories. The customer is at the heart of its business
model, which strives to link customer demand to manufacturing, and manufacturing to
distribution. Maria, the Supply Chain manager of the company, is concerned about fast
moving products and high volatility. Since the number of SKUs has grown dramatically in
the last year, she believes that the SKUs should be segmented and has asked you to run
an ABC analysis on a sample of 60 SKUs (all of them are jeans).
Part 1
0.0/0.1 points (graded)
In the linked file here, you will find the information you need regarding the unit cost, unit
sales price, weekly sales volume, and weekly sales standard deviation for each SKU. All
currencies are in Euros.
Which SKU has the most volatile demand (highest coefficient of variation)? The coefficient
of variation is defined as C1 = o/. Just enter the SKU_ID.
Submit
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Part 2
0.0/0.5 points (graded)
When María saw the high volatility of this item, she asks you to analyze the volatility of
a
sample of 60 SKUs (different jeans models) in terms of Coefficient of Variation (CV). In
particular, she wants to know the percentage of SKUs that have a CV greater than or equal
to 0.47. Just enter a value and do not include the % sign. For example, if you think the
value is 35.54%, just enter 35.5 (round to nearest 1 decimal places):
Submit
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Part 3
0.0/0.5 points (graded)
In addition to the volatility, you also propose to analyze the fast moving items. You believe
that the fast moving, highly volatile SKUs should be managed separately with more time
spent on improving the forecasting capabilities. You select the criteria for fast moving to
be selling 35 or more units per week and the criteria for highly volatile as having a CV
greater than or equal to 0.47. What percentage of the total profit is contributed by these
Fast Moving and Highly Volatile SKUs (both criteria satisfied)? Just enter a value and do not
include the % sign. For example, if you think the value is 35.54%, just enter 35.5 (round to
nearest 1 decimal places):
Submit
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Part 4
0.0/0.5 points (graded)
Let's run now the ABC analysis based on profitability. What percentage of the total profit is
contributed by the top 15 SKUs of the 60, as ranked by profit? Just enter the value and do
not include the % sign. For example, if you think the value is 35.54%, just enter 35.5 (round
to nearest 1 decimal place):
Submit
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Part 5
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What percentage of the total profit is contributed by the bottom 31 SKUs of the 60, ranked
by profit? Just enter the value and do not include the % sign. For example, if you think the
value is 35.54%, just enter 35.5 (round to nearest 1 decimal place):
Submit
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Part 6
0.0/0.5 points (graded)
Demand uncertainty, particularly in the fast fashion industry, is a significant concern. For
this reason, María, the Supply Chain Manager of the Fast Fashion Group (FFG) has decided
to pay attention to the distribution of the demand of several of their items, and she asks
for your help.
She wants you to start analyzing one of their basics jeans, the "regular fit straight blue
jeans" (SKU #J65991X). The weekly demand for this item is found to be normally
distributed, with a mean of 67 units and a standard deviation of 15 units. (Note that this
SKU is not in the data set.)
If you stocked 74 units of the "regular fit straight blue jeans" (SKU #J65991X) for the first
week, what is the probability that the demand during week 1 exceeds the stocking level?
Enter the probability as a fraction, e.g. as a number between 0 and 1 with 4 decimal digits (e.g. for 12.34%, enter
0.1234 as your answer).
Submit
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Part 7
0.0/0.5 points (graded)
How many "regular fit straight blue jeans" (SKU #J65991X) do you need to have in stock to
reduce the probability that the demand exceeds the stocking level to 6.0%?
Enter your answer as an integer.
Submit
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Part 8
0.0/0.5 points (graded)
A few regular customers have asked FFG for ultra stretch blue jeans. María has agreed to
stock it, even though sales for these items have been slow. After analyzing past data, you
have found that a Poisson distribution with a mean of 5.4 closely fits the weekly sales
pattern for this model of jeans. The cost of the SKU #J19901X (ultra stretch blue jeans) is
$18.25 and the unit sales price is $39.99.
What is the probability of selling 0 ultra stretch blue jeans (SKU #J19901X) in a week?
Enter the probability as a fraction, e.g. as a number between 0 and 1 with 4 decimal digits (e.g. for 12.34%, enter
0.1234 as your answer).
Part 9
0.0/0.5 points (graded)
After seeing the previous result, María decided to stock only 4 units of ultra stretch blue
jeans every week. What is the probability that your demand for SKU #J19901X exceeds the
level set by María of 4 units?
Enter the probability as a fraction, e.g. as a number between 0 and 1 with 4 decimal digits (e.g. for 12.34%, enter
0.1234 as your answer).
Submit
You have used 0 of 2 attempts
Part 10
0.0/0.5 points (graded)
What is the probability that your demand for SKU #J19901X will be no less than 1 unit and
no more than 4 units?
Enter the probability as a fraction, e.g. as a number between 0 and 1 with 4 decimal digits (e.g. for 12.34%, enter
0.1234 as your answer).

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Answers

Fast Fashion Retailers

1. J29154

2. 51.6

3. 66.1

4. 48.1...