What steps should be taken by louis vuitton

Assignment Help Managerial Accounting

Reference no: EM132713628

Even the Best Have to Get Better

Louis Vuitton is a French manufacturer of high-end handbags, wallets, and suitcases. Its reputation for quality and style allows it to charge extremely high prices-for example, $700 for a tote bag. But often in the past, when demand was hot, supply was nonexistent-shelves were empty, and would-be buyers left empty-handed.

Luxury-goods manufacturers used to consider stockouts to be a good thing, but recently Louis Vuitton changed its attitude. The company adopted "lean" processes used by car manufacturers and electronics companies to speed up production of "hot" products. Work is done by flexible teams, with jobs organized based on how long a task takes. By reducing wasted time and eliminating bottlenecks, what used to take 20 to 30 workers eight days to do now takes 6 to 12 workers one day. Also, production employees who used to specialize on a single task on a single product are now multiskilled. This allows them to quickly switch products to meet demand.

To make sure that the factory is making the right products, within a week of a product launch, Louis Vuitton stores around the world feed sales information to the headquarters in France, and production is adjusted accordingly. Finally, the new production processes have also improved quality. Returns of some products are down by two-thirds, which makes quite a difference to the bottom line when the products are pricey.

Problem 1: What steps should be taken by Louis Vuitton in order to ensure that production meets demand?

Reference no: EM132713628

Questions Cloud

How do compute the anticipated break-even sales : How do Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

Explain the definition of good decision making : A definition of good decision making (based on a synthesis of research you conducted on published experts in decision making).

Cognitive behavioral intervention in comparison : How would you prove the advantages and disadvantages of utilizing a cognitive behavioral intervention in comparison with another approach for students with EBD?

Explain the importance of developing sales : Explain the importance of developing sales strategies that maximise profitability

What steps should be taken by louis vuitton : Louis Vuitton is a French manufacturer of high-end handbags. What steps should be taken by Louis Vuitton in order to ensure that production meets demand?

Incorporate account management in sales structures : Describe why it is important to incorporate account management within sales structures

Trying to improve patient satisfaction scores : The health care facility you work with is trying to improve patient satisfaction scores, and you have been asked to develop an educational program for staff.

Concept of portfolio management : Evaluate how the core principles of finance and the concept of portfolio management can improve profitability and give a competitive edge

What will be the approximate monthly cost for father care : If the cost of long-term care is increasing at 7 percent a year, what will be the approximate monthly cost for father's care in eight years?

User Account

All Pages