OIM 210 Lecture Notes - Lecture 4: Cash Register, Value Chain, Stok

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Pictured: kate middleton, gisele bunchenden: largest pure-play fashion retailer in the world. Gap does must of its manufacturing in bangladesh, Contract manufacturing: outsourcing production to third- party firms. But, you may be associated with all of the problems those plants face bad conditions, low pay, child labor: raising capital by issuing shares or debt. Debt is an obligation that you want to pay back with interest. At one time, the bond status for gap was junk, which meant it was risky to buy a gap bond: guessing game depended on intuition and guessing, mickey. Dressler"s i(cid:374)tuitio(cid:374) a(cid:271)out (cid:449)hat"s i(cid:374) a(cid:374)d (cid:374)ot i(cid:374: not a lot of variety - only saw new things at gap twice a year (new shipments every 6 months) Lead time design, your collection, send it out to contract manufacturers, wait until the merchandise comes back. There are at least four collections every year (per season) Change in material costs: did(cid:374)"t (cid:272)o(cid:374)trol (cid:449)arehouses, slo(cid:449)ed the(cid:373) do(cid:449)(cid:374)

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