Question

3. You have the budget to purchase 100 sweatshirts for your store. All the sweatshirts will be purchased from Hanes for $12 each. The distribution of sizes will be as follows:

Small 12% Medium 28% Large 32% X-Large 20% XX-Large 8%

Four colors will be represented in the assortment as follows:

Red 25% Blue 25% White 25% Black 25%

One third of the assortment will be hooded, and the remainder will be nonhooded. Develop an assortment plan based on this information. Then, analyze the completed assortment plan. Is this an appropriate distribution for the assortment plan? If not, how could the distribution be improved?

Answer 1

Solution (3)
	Budgeted purchases =100 sweatshirts
	Purchase cost per sweatshirt = $12
	total cost =12*100 =1200
	Assortment plan
		Small	medium	large	X-Large	XX-large	total
	Distribution on the basis of size	144	336	384	240	96	1200
	Distribution on the basis of color
	Red	36	84	96	60	24	300
	Blue	36	84	96	60	24	300
	White	36	84	96	60	24	300
	Black	36	84	96	60	24	300
	Hooded
	Red	12	28	32	20	8	100
	Blue	12	28	32	20	8	100
	White	12	28	32	20	8	100
	Black	12	28	32	20	8	100
	Non-hooded
	Red	24	56	64	40	16	200
	Blue	24	56	64	40	16	200
	White	24	56	64	40	16	200
	Black	24	56	64	40	16	200
	Is this an appropriate distribution for the assortment plan?
	No,
	how could the distribution be improved
	The assortment plan should be based on the financial objectives and seasonality of the merchandise, e.g. sale of sweatshirt may be higher in winters but low in summer. further, it may be planned on the basis of preferences of the customers.