Question

In: Operations Management

Taylor and Sons is a men's clothing store. It orders 1000 summer suits from ABC Clothiers...

Taylor and Sons is a men's clothing store. It orders 1000 summer suits from ABC Clothiers for delivery on April 1. ABC takes the order. After three weeks pass, ABC informs Taylor it will not be able to make delivery as scheduled, but can make delivery by June 1. Taylor has expended monies to have an ad campaign to sell the suits.

A) What are Taylor's remedies?

B) Should Taylor wait to take delivery, and if so, what are Taylor's damages and remedies?

C) What are ABC's remedies if Taylor takes delivery but refuses to pay for the suits?

Solutions

Expert Solution

A) Taylor’s remedies:

· Taylor should withdraw the order from ABC as they could not able to complete the order within the given timeline

· Taylor should stop further production from ABC and sell the available stock

· Taylor can add more workers to support ABC to complete the order within the given timeline

· Deduct the amount that is charged for 1000 summer suits

· Make necessary changes to the ad campaign by extending the sale with exciting offer’s

B) Should Wait to take the delivery

· No, because as they are specially made for summer

· If Taylor wait to take the delivery than the summer time that the company plans to sell the suits will be wasted and they will be on loses

· The bulk order sale that is planned will be ended with losses

· The investment will go in vain

Damages:

· Damage for the brand name

· Non availability brings customer dissatisfaction

· Could not able to reach the target sales

· Fail to gain profits that are estimated

Remedies

· Taylor should minimize the order and sell the available stock to reduce the loss

· Keep the stock for next year sale

· Extend Sale through exciting offers

· Reduce the price of the product

C) ABC’s remedies:

· Accept the mistake for late delivery and settle payment by deducting the late payment charges

· As Taylor is not ready to pay the amount don’t deliver the summer suits

· Send remainders or notice to pay the amount for the delivery

· Still insists to pay for the suits Take legal action on Taylors behaviour

keosha answered 2 months ago
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