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The following
are some solutions that Azgard9 could implement to solve the customers
complaints.

1.     
Shorten lead time with the current
suppliers:

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It was suggested
to reduce lead time while using the same suppliers. Executing this alternative
will build the cost by 30% over the present cost. On the off chance that
Azgard9 chooses to take up this choice, lead time will be decreased to as
little as a month and a half. This decrease of lead time will most
unquestionably take care of the issue which are faced with the customers in
Europe. While this alternative may lead to revenue increment of 10% the
additional crush cost will be recurring with each order request. Presently the
yearly cost of sales is 40% of sales of £ 200 M that is £ 80 Million (40%x £
200,000,000). In the event that the cost goes up by 30% it would mean 30% of £
80 Million which is £ 24,000,000. In return for this increase in cost, the
organization could make a rough increment in income of 10% will be £ 20, 000
(10%x £ 200 000) and the PBT of £ 6,400,000 (32% of offers). For this alternative,
cost exceed benefits by £ 17,000,000 every year.

2.     
Moving finishing facility to United
Kingdom:

Second alternative
was setting up a finishing facility in United Kingdom. With this alternative,
Azgard9 will have the capacity to decrease lead time to roughly three months
and Azgard9 would need to keep about six’s week supply of basic jeans available
in United Kingdom. This will include changing the basement of the current Office
to a finishing office. Which will require new equipment and renovation. The
working expense will be lessened by 10% because of using economies of scale in
the manufacturing procedure. This will likewise explain the complaints of
Azgard9 not being a trend setter as before in light of the fact that now
Azgard9 designers will be prepared to react to fashion changes faster.

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