09_Activity 1

1. Analyze and describe the economic requirements that could have influenced the major
problem in the given case study.
- Given that H&M is a well-known apparel company with various locations across the world, I feel
that their economic needs seasonal demand, quick supply, ongoing production, and price
stabilization could have influenced the case study's main issue. The season influences demand,
for example, loose clothing or swimsuits in the summer and fur jackets, sweaters, and long
sleeves in the winter. These products will be manufactured throughout the year to meet peak
seasonal demand. As a result, these products must be housed in a warehouse in order to be
available when needed. Due to the potential distance between manufacturing locations and the
final consumer, a vast, dispersed distribution network may provide quick supply. It is critical to
stock these goods close to the point of consumption in order to ensure that customers can access
these goods as soon as they are required. Maintain an appropriate supply of raw materials in the
warehouse to support continuous output while keeping factories running. A H&M clothes
business, for example, has a facility that can hold multiple rolls of thread. Last but not least, they
keep market prices consistent by maintaining appropriate inventory in warehouses.

2. Recommend the appropriate type/s warehouse/s that will help H&M better manage their
excess inventories.
- The type of warehouse that will assist H&M in better managing surplus inventories is a support
warehouse, which is a very modest warehouse or stock room that delivers raw materials and/or
work in process to business operations. There are many small orders driven by production
schedules and in some cases, there is only statistical information available about order
composition.

3. H&M has taken the lead in introducing circular economy sustainable practices. The brand has
introduced a paradigm shift in the way clothing is created and worn. That is, without compromising its
core value proposition of supplying trendy and inexpensive clothing to clients. Apart from maximizing
the usage of existing materials, the circular strategy has As a result, new business models for
overhauling each stage of a garment's value chain have been devised. While the group is still a long
way from reaching their lofty goals, its existing supply chain and circular initiatives serve as a work-in-
progress roadmap for other industry players to build on for a more sustainable future in the garment
sector.