STI COLLEGE TAGUM INC.

Apokon Road Tagum

Tel No. (084) 227 0459

BACHELOR OF SCIENCE IN MANAGEMENT ACCOUNTING

Quality Assurance Plan: Revitalizing

Gela's Wardrobe

In Partial Fulfillment of the Requirements

For Total Quality Management
2nd Semester A.Y 2024-2025

Submitted to
Grace Ann Enoy

Prepared by:
Sofhia Kaithlyn C. Albarando
Glaiza Mae Reyes
Rbern Jyle S. Ardon

MAY 2025
 Chapter 1
Research Analysis

Gela's Wardrobe, a retail clothing store and rental business located in Roxas
Ext., Digos City, Davao del Sur, experienced bankruptcy in August 2020 after
operating from June 2018 to August 2020. This Quality Assurance Plan outlines a
comprehensive strategy for its revitalization, drawing heavily on financial and
operational data from 2018-2020 provided by the owner, Miss Angela Lingatong.
The plan focuses on a customer-centric approach, operational excellence, digital
transformation, and robust financial management to ensure long-term sustainability
and profitability. An omni-channel strategy will be implemented, combining online
and offline sales channels for enhanced resilience. Key Performance Indicators
(KPIs) will track progress and inform adaptive adjustments throughout the
revitalization process.
Analysis of Business Failure:
The financial data from 2018, 2019, and 2020 (see Section 1.1) reveals a
clear trajectory of Gela's Wardrobe's financial performance, transitioning from
profitability to significant losses and ultimately, bankruptcy. A detailed analysis of
this data is presented below. While the COVID-19 pandemic exacerbated existing
vulnerabilities, underlying weaknesses in inventory management, supply chain
management, and financial control were primary drivers of the business's failure.
The inability to adapt to changing market conditions and a failure to implement a
timely digital transformation strategy further compounded these issues. The following
sections detail the financial trends leading to the company's ultimate failure,
highlighting the impact of these critical management deficiencies.
Analysis of 2018, 2019 and 2020 Data:
Based on the business owner's financial records, the data reveals a clear
trajectory for Gela's Wardrobe, shifting from consistent profitability to a significant
loss and eventual bankruptcy. In 2018, Gela's Wardrobe demonstrated strong
profitability, with a net income before taxes of ₱336,000. The gross profit margin of
54.3% indicates efficient cost management relative to sales. The net profit margin of
40% showcases a healthy return on total revenue. Both sales and rental revenue
streams contributed significantly to this positive outcome. The business continued
its strong performance in 2019, exhibiting further growth. Net income before taxes
increased to ₱402,000, representing a 19.6% improvement over 2018. The
consistent gross profit margin of 54.3% suggests sustained efficiency in cost control.
The net profit margin also improved to 41%, indicating a higher return on revenue.
The sustained growth across both sales and rentals suggests a solid customer base
and effective business operations. However, 2020 marks a dramatic reversal.

1
Despite an increase in bothsales and rental revenue, the business experienced a
significant net loss of ₱120,000 before taxes. This is primarily attributable to a
massive surge in operating expenses (+500% increase from 2019), which
overshadowed the revenue growth. The increase in cost of goods sold was also
significant, signaling poor inventory management or increased input costs. The
dramatic reduction in the net profit margin to -10% demonstrates the business's
unsustainable position. This sharp decline highlights the critical need for improved
inventory management, supply chain efficiency, and financial controls as outlined in
the subsequent sections of this plan.
Financial Data for 2018, 2019 and 2020:

% Change (19-
Item 2018 2019 2020 % Change (18-20)
20)

700,00
Revenue (Sales) 600,000 840,000 +40% +20%
0
280,00
Revenue (Rentals) 240,000 360,000 +50% +28.6%
0
980,00
Total Revenue 840,000 1,200,000 +42.9% +22.4%
0
420,00
Cost of Goods Sold (Sales) 360,000 504,000 +40% +20%
0
Cost of Goods Sold
24,000 28,000 36,000 +50% +28.6%
(Rentals)
532,00
Gross Profit 456,000 660,000 +44.3% +24%
0
780,00
Operating Expenses 120,000 130,000 +550% +500%
0
Net Income/Loss Before 402,00
336,000 (120,000) -135% -129.9%
Taxes 0
Gross Profit Margin % 54.3% 54.3% 55% +1% +1%

Net Profit Margin % 40% 41% -10% -50% -51%

Section 1.1

Formula: Percentage Change = [(New Value - Old Value) / Old Value] * 100

2
 Chapter 2
Customer Centric Approach

Redefining the Business Model

To ensure long-term sustainability, Gela’s Wardrobe will adopt a revised
business model prioritizing customer needs and preferences. This customer-centric
approach addresses the shortcomings identified earlier, focusing on improved
inventory management, supply chain efficiency, and financial control. The core
strategy is to create an omni-channel presence, combining online and offline sales
and rental channels. This diversified approach will not only cater to a broader
customer base but also mitigate risks associated with relying on a single sales
channel (Yehiav, G.,2019). This aligns with the principles of customer-centric
business models that prioritize flexibility and choice (McKinsey & Company,2024).
Target Market Expansion
While retaining the existing customer base, Gela’s Wardrobe will strategically
expand its target market by broadening its product offerings. This customer-centric
expansion includes moving beyond formal wear to encompass casual wear,
accessories, and potentially offering styling services. This diversification directly
addresses the diverse needs and preferences of a wider customer segment. By
understanding and responding to unmet customer needs, this strategy aims to
increase customer lifetime value and loyalty (NetSuite,2022). The expanded
offerings aim to improve customer satisfaction by providing more relevant options
and a more personalized shopping experience (Azzahrah, et al., 2023).
Value Proposition
Gela’s Wardrobe's value proposition will be built upon a foundation of
affordability, convenience, and exceptional customer service. This customer-centric
approach differentiates the business by offering both sales and rental options,
catering to a variety of customer needs and budgets. The online platform offers the
convenience of browsing and purchasing from home, while the physical store
provides a personalized shopping experience, including fitting assistance and expert
style advice (Taylor & Francis, 2024). This multi-channel strategy prioritizes
customer choice and convenience, maximizing satisfaction and encouraging loyalty
(NetSuite 2022). Active solicitation and use of customer feedback will further
enhance the shopping experience and ensure continuous improvement ( Kowalska &
Rubkiewicz, 2025).

Chapter 3
3
 Proposed Course of Action

Streamlining operations is crucial for revitalizing Gela’s Wardrobe. This will involve
implementing efficient inventory management, optimizing the supply chain, and
establishing robust financial controls.
A. Forecasting and Demand Management
Historical Data Analysis
Based on previous data's we noticed peak demand periods of rental and sales, we
noticed that there are months and certain events that boosts Gela’s Wardrobe profit.
Peak Demand Periods

Section 3.1

Forecasting Revenue:
Conservative Growth: Assuming a more conservative growth rate than the past (10-
15%), considering the previous financial instability, we can project reasonable
revenue targets for the next 1-3 years. This accounts for the possibility that the
previous rapid growth was unsustainable and might not continue at the same pace.
Seasonal Adjustments: Incorporate seasonal adjustments into the forecast based on
the historical data, acknowledging peak periods (March-May and December). This
will allow for more accurate predictions of sales during high-demand months and
more effective planning of inventory and staffing.
Event-Based Adjustments: Incorporate the impact of specific events (weddings,
proms, cultural celebrations).

4
Forecasting Operating Expenses:
Baseline Operating Expenses: Gela’s Wardrobe should use the lower operating
expenses from 2018 or 2020 as a baseline for future expenses. This approach is
cautious, considering that the 2019 expenses were an anomaly. Operating expenses
are necessary and unavoidable for most businesses. Some firms successfully
reduce operating expenses to gain a competitive advantage and
increase earnings. However, reducing operating expenses can also compromise the
integrity and quality of operations (Will Kenton, 2024).
Contingency Planning: Gela’s Wardrobe should include a contingency plan for
potential unexpected increases in 2½ expenses. This might involve setting aside a
reserve or creating flexible budgeting to accommodate unforeseen circumstances.
Unpredictable events can interrupt business operations and halt production a
contingency plan can help you handle these situations to keep your business
operating as smoothly as possible (Blog, 2023).
Cost Reduction Strategies: Incorporate planned cost reduction strategies into the
forecast. This could involve negotiating better supplier contracts, optimizing logistics,
or streamlining processes. By delving into the cost reduction process, businesses
can make informed decisions that not only reduce expenses but also optimize
resources and ensure long-term sustainability (Michael Seaman, 2024).
Demand Management Strategies:
Inventory Management: Employ the ABC analysis to prioritize inventory control,
focusing on high-demand items during peak seasons. Use safety stock to mitigate
risks of stock outs. Consider more agile inventory management techniques to
respond to unexpected fluctuations.
Supply Chain Management: Secure reliable and cost-effective suppliers. Diversify
suppliers to mitigate risk. Optimize logistics to minimize costs and ensure timely
delivery.
Pricing Strategies: Dynamic pricing is defined as price changes that are prompted by
changes or differences in four key underlying market demand drivers: People
(individual consumers or consumer segments), Product configurations, Periods
(time), and Places (locations) (Kopalle et al., 2023).
Marketing and Sales: Target marketing efforts to peak periods and leverage events
for increased sales. Monitor sales closely to respond quickly to changing customer
behavior. Marketing management are to understand the needs and wants of
customers and develop strategies to satisfy those needs profitably. By effectively
managing marketing activities, businesses can create a strong brand presence,
attract and retain customers and generate revenue (Gisma University, 2025).

5
Market Research

Section 3.2
The market research, focusing on the 18-24 age demographic in Digos City,
Davao del Sur, reveals a strong preference for affordable, trendy casual wear among
students. This suggests targeting key educational institutions like Cor Jesu College,
Polytechnic College of Digos City, Southern Mindanao Computer College, University
of Mindanao - Digos College, Holy Cross Academy of Digos, Digos City National
High School, and Digos Central Adventist Academy with marketing strategies
emphasizing value and affordability. The preference for trying clothes on before
purchasing necessitates a multi-channel approach, combining online presence with
physical retail or pop-up shop locations near these schools to overcome concerns
about sizing and online delivery. Social media marketing will play a crucial role,
considering the high price sensitivity and online engagement of this demographic.
However, given the limited sample size of the initial survey, further research is
necessary to validate these findings and better understand the nuances of student
preferences across these diverse educational institutions.
Demand Management Strategies for Gela's Wardrobe: An Operational
Capacity-Informed Approach
A. Targeted Promotional Campaigns: Capacity-Constrained Optimization
The effectiveness of promotional campaigns is directly contingent upon Gela’s
Wardrobe’s capacity to fulfill the anticipated increase in demand. This method is
reinforced by demand forecasting research, which emphases the need of demand
forecasting in operational planning to manage inventories and optimize customer
satisfaction. Prior to launching any campaign, a thorough capacity assessment is
crucial.
 Inventory Capacity: Sufficient storage space must be available to
accommodate anticipated increases in inventory. Effective inventory
management affects every aspect of the business from your warehousing
costs to your ability to fulfill orders accurately and on time. You want to be on
top of everything from raw materials to finished goods (Courtenay Stevans,
2022).

6
  Staffing Capacity: Adequate staffing levels are required to manage increased
order processing, customer service inquiries, and other operational demands.
Staff capacity building is a crucial aspect of organizational development and
ensuring the success of a business or institution. It involves providing
employees with the necessary knowledge, skills, and resources to enhance
their performance, productivity, and professional growth (Sarah S. 2023).
 Production Capacity: Production Capacity is like the maximum potential of a
business to produce finished goods with available budget and raw materials
or inputs. It can be calculated over a period of time like a week, days, or
months even. t determines how much production a business anticipates to be
sold for next few years or months (MBA School Team, 2024).

Campaign design
 Targeted Scope: Campaigns should be carefully scoped to avoid over-
promising and under-delivering. Offers should be limited to specific items or
quantities to mitigate potential operational strain. A project's scope is essential
because it guides what resources or deliverables you can add or remove as
the project progresses. It also defines a business' needs, the expected project
outcomes, and assumptions outside of the project team's control (Indeed
Editorial Team, 2024).
 Phased Rollout: A phased rollout allows for iterative adjustments based on
initial responses and capacity utilization. Smaller-scale pilot campaigns can
inform the subsequent phases of broader deployment. It helps reduce the
risks of failures and makes things easier for product teams to plan and
execute on larger projects effectively. It forces product teams to examine their
progress on a more consistent basis and make changes in real time (William,
2023).
 Real-time Monitoring and Adjustment: Continuous monitoring of sales data,
order fulfillment rates, and customer service metrics is essential. If capacity
limitations are reached, campaigns should be temporarily paused or adjusted
to prevent delays and maintain customer satisfaction (Keri Bowman, 2023).

B. Flexible Pricing Strategies: Dynamic Pricing and Inventory Management

 Capacity-Constrained Dynamic Pricing: Dynamic pricing is a popular pricing
strategy that has been used by businesses for years. The goal of dynamic
pricing is to optimize prices based on demand, competition, and other factors
in order to maximize profits (Kate Gibson, 2024).
Implementing a capacity-constrained dynamic pricing model allows
Gela's Wardrobe to optimize revenue and resource allocation by adjusting
prices based on real-time inventory and staffing levels. This strategy
maximizes profitability by capturing higher margins during peak demand while
managing capacity constraints and preventing stockouts. The model's
responsiveness to market fluctuations enhances inventory control and, when

7
 properly communicated, improves customer experience by managing
expectations and preventing service disruptions.
 Demand-Based Inventory Management: Pricing should be strategically used
to manage inventory levels. Price reductions on overstocked items facilitate
inventory clearance, while price increases on high-demand, low-stock items
regulate demand. Implementing demand-based inventory management
through strategic pricing enables Gela's Wardrobe to optimize inventory
levels, reducing storage costs and the risk of obsolescence. Price reductions
on overstocked items facilitate quick clearance, improving cash flow and
freeing capital. Conversely, increasing prices on high-demand, low-stock
items regulates demand, prevents stockouts, and maximizes profitability. This
data-driven approach leads to better inventory planning and enhances overall
efficiency (Abby Jenkins, 2025).
 Staffing-Informed Pricing: Price adjustments may be necessary during peak
periods to manage workload and maintain service quality when staffing
resources are stretched. Adjusting prices during peak periods when staffing
resources are limited allows Gela's Wardrobe to manage workload effectively,
preventing staff overwhelm and burnout. This ensures consistent service
quality, improves employee morale, and protects the brand's reputation by
avoiding negative customer experiences due to understaffing. The strategic
price adjustments help balance customer demand with capacity, maximizing
sales while maintaining a positive customer experience (Chris Petty, 2023).
 Transparent Surge Pricing: Surge pricing is a dynamic pricing method where
prices are temporarily increased as a reaction to increased demand and
mostly limited supply. While surge pricing during peak demand can be
beneficial, complete transparency with customers is essential to avoid
negative perceptions and maintain brand reputation. Open communication
regarding the rationale behind price increases—such as high demand or
limited resources—builds trust, manages expectations, and fosters
understanding. This transparency promotes fair pricing practices, strengthens
customer relationships, and prevents negative publicity, ultimately leading to
more positive customer experiences (Maud Castelijin, 2025).
C. Strategic Partnerships: Capacity-Aligned Collaboration and Market Expansion
Strategic partnerships offer a powerful mechanism to both augment Gela’s
Wardrobe’s operational capacity and expand its market reach. However, as with all
demand management strategies, careful consideration of capacity limitations is
crucial to ensure the efficacy and sustainability of these collaborations.
 Partner Capacity Assessment: Prior to initiating any partnership, a thorough
evaluation of the partner’s operational capacity is essential. This assessment
should consider the partner’s ability to handle potential increases in demand
and its alignment with Gela’s Wardrobe’s existing resources. This ensures
seamless integration, prevents bottlenecks, protects brand reputation by
mitigating risks of unmet demands, and optimizes resource allocation. Such
due diligence enables informed decision-making, fostering sustainable growth
and minimizing disruptions resulting from capacity limitations (Blog, 2025).

8
  Phased Partnership Rollouts: Employing a phased partnership rollout,
beginning with smaller collaborations, provides Gela's Wardrobe with a
strategic advantage by mitigating risk, enabling iterative improvements, and
facilitating data-driven decision-making. This approach allows for flexibility,
resource optimization, and scalability testing, ultimately leading to more
successful and sustainable partnerships (William, 2023).
 Capacity Sharing Agreements: Implementing clear capacity-sharing
agreements is strategically vital for Gela's Wardrobe, preventing disputes,
ensuring seamless operations, and managing risk. These agreements define
roles, responsibilities, and capacity limits, fostering effective communication,
protecting legal interests, and promoting trust between partners for scalable
and successful collaborations. The mismatch between supply and demand is
a prevailing phenomenon due to fluctuations in market demand. A common
practice employed to align capacity with demand is capacity sharing, whereby
a firm possessing excess capacity collaborates with others that are incapable
of meeting captured demand (Wei Xiao & Kai Li, 2024).
 Strategic Outsourcing: Strategic outsourcing of specific tasks during peak
demand periods offers Gela's Wardrobe a significant strategic advantage.
This approach increases capacity, reduces internal pressure, optimizes costs,
provides access to specialized expertise, and allows for a focus on core
competencies, ultimately enhancing service quality and customer satisfaction
—provided reliable outsourcing partners are selected (Indeed, 2025).
 Expanding Reach and Market Access: Partnerships with complementary
businesses (e.g., event planners, local boutiques) offer significant
opportunities to broaden Gela’s Wardrobe's reach to new customer segments.
This is particularly beneficial during periods of low demand, as targeted
campaigns can leverage partner networks to attract new customers and
stimulate sales. Partnering with complementary businesses offers Gela's
Wardrobe a powerful strategy for expanding reach and accessing new market
segments, particularly beneficial during periods of low demand. Collaborations
with event planners or local boutiques provide access to their existing
customer networks, enabling targeted campaigns to attract new clientele and
boost sales. This diversification mitigates the impact of seasonal fluctuations
and strengthens Gela's overall market position (Indeed, 2025).
 Mitigating Demand Fluctuations: Strategic partnerships provide a buffer
against unpredictable fluctuations in demand. Collaborations can be scaled
up or down based on immediate needs, offering flexibility in managing
unexpected surges or lulls. Strategic partnerships offer Gela's Wardrobe a
crucial mechanism for mitigating unpredictable demand fluctuations. The
ability to scale collaborations up or down based on immediate needs provides
essential flexibility in managing both unexpected surges and periods of low
demand, ensuring operational stability and resource optimization (Rob
O’byrne, 2024).
B. Inventory Management
Optimal Inventory Levels: The ABC analysis approach will be used to determine the
ideal inventory levels for each product category while balancing expenses and

9
consumer demand. The ABC analysis is a tried-and-true inventory management
technique that classifies inventory items according to their value and importance to
business operations (NetSuite, 2024).
Inventory Control Systems: A digital inventory management system (using
spreadsheet software or an affordable inventory management application) will be
implemented to track stock levels in real-time, minimizing stock outs and
overstocking. This ensures optimal inventory levels, reducing storage costs and
improving cash flow. Regular inventory audits will prevent obsolete stock
accumulation. Dynamic pricing in the presence of inventory considerations has
shown increasing adoption in practice due to its applicability in most markets
(Management Science, 2003).
Supply Chain Optimization: A business optimized supply chain allows a business to
be agile and responsive to the changing market conditions and consumer demands.
This allows your business to ensure supply chain sustainability and stay competitive
in the face of challenges. Gela's Wardrobe will explore direct sourcing or drop
shipping for online sales to reduce storage costs and improve efficiency.
Relationships with existing wholesalers will be re-evaluated to secure more favorable
terms and diversify supplier relationships (Infosys BPM, 2024).
C. Supply Chain Management:
Supplier Evaluation: A rigorous supplier evaluation process will be implemented,
considering factors such as quality, price, reliability, ethical sourcing, and
environmental impact. Jayson Tailor and Tai Tong Chua Che & Company's reliability
will be assessed based on several factors, including on-time delivery performance,
communication effectiveness, order fulfillment accuracy, business continuity
planning, and financial stability. Conducting a supplier assessment is essential to
ensure product quality, reliability, and compliance with standards. It helps identify
risks, assess supplier capabilities, and establish a mutually beneficial relationship
(Blogs, 2024).
Risk Management: A risk response planning matrix will be used to create a
comprehensive risk management plan, which will include identifying potential supply
chain interruptions and applying mitigation measures. Contemporary study
emphasis that enterprises staged upstream of the chain suffer from variance
amplification caused by demand information distortion in a multi-stage supply chain,
requiring rigorous risk management (Taylor & Francis, 2020).
Gela's Wardrobe faces significant supply chain risks, primarily stemming from
supplier failures, natural disasters, and transportation delays. These risks, if not
effectively mitigated, could severely impact production, delivery timelines, and
ultimately, profitability. The plan's proposed mitigation and contingency strategies
including supplier diversification, robust quality control, disaster preparedness
protocols, and flexible sourcing options are crucial for building a resilient and
sustainable supply chain.
D. Project Management

10
Project Prioritization: Projects will be prioritized based on their impact on profitability
and market reach. The development of the e-commerce website and the expansion
of the product line will be high priorities. Good prioritization can lead to process
efficiencies, a happy team, and project success. Using frameworks to deal with
difficult stakeholders, reduce daily fires, and bring clarity to what’s important (Lynn
Winter, 2024).
Project Planning: A Gantt chart will be used to visualize project timelines, resource
allocation, and milestones.

Section 3.3
Project Execution: PERT's project management capabilities to streamline various
operations. From planning new collection launches, encompassing design, sourcing,
production, and marketing, to managing production workflows and inventory levels,
PERT's breakdown of tasks into manageable units, coupled with its three-point
estimation for handling uncertainties, allows for efficient resource allocation and
realistic timeline projections.

11
 Section 3.4

Chapter 4
Sustainability

A. Process Review and Improvement

TQM Tools: Three TQM tools will be used
Value Stream Mapping: VSM will visually map the entire process of designing,
sourcing materials, manufacturing, and delivering products to customers, both online
and in-store. This will reveal bottlenecks, unnecessary steps, and areas of waste
(time, materials, motion, etc.). By identifying these inefficiencies, Gela's Wardrobe
can streamline its workflow, reduce lead times, and minimize waste.

Section 4.1

Pareto Chart: Pareto Analysis will help identify the vital few issues that contribute to
the majority of defects and inefficiencies. By focusing on these key issues, Gela's
Wardrobe can achieve significant improvements with targeted efforts.

12
 Section 4.2

Control Charts: Control charts will be used to monitor key performance indicators
(KPIs) throughout the process, ensuring continuous improvement and preventing
defects. These charts will track metrics such as on-time delivery rates, defect rates,
inventory turnover, and customer satisfaction. By setting upper and lower control
limits, deviations can be identified and addressed proactively.

Sustainable Business Model Integration

Lean Manufacturing: Value Stream Map (VSM) will be visually representing the
entire clothing production and delivery process, allowing for the identification and
elimination of waste such as excess inventory, unnecessary movement, delays, and
defects. By pinpointing these inefficiencies, a VSM facilitates the design of
streamlined processes with reduced lead times, lower costs, and improved quality.
This visual tool also enhances communication and collaboration among team
members, leading to more effective problem-solving and ultimately, increased
customer satisfaction. The process involves mapping the current state, identifying
waste, developing a future state map with improvements, implementing changes,
and continuously monitoring for further optimization (Juran, 2024).
Continuous Improvement (Kaizen): Integrating continuous improvement (Kaizen) via
control charts and Pareto analysis creates a data-driven culture at Gela's Wardrobe,
proactively identifying and addressing performance deviations and key issues.
Control charts provide real-time monitoring of KPIs, enabling prompt corrective
action before minor problems escalate, while Pareto analysis pinpoints the "vital few"
issues contributing to most defects, facilitating targeted improvements. This
systematic approach enhances efficiency, quality, and customer satisfaction by
optimizing processes, reducing waste, and addressing customer concerns directly.

13
The resulting data-driven decision-making fosters a culture of continuous
improvement, increasing employee engagement and positioning Gela's Wardrobe for
sustainable growth and adaptation to market changes (Jasmine Nguyen, 2025).
Data-Driven Decision Making: Integrating data-driven decision-making empowers
Gela's Wardrobe to transition from intuitive choices to evidence-based strategies. By
analyzing data from control charts, Pareto analysis, and other sources, Gela can
make informed decisions regarding operational improvements, resource allocation,
and customer engagement. This reduces risk, enhances efficiency and profitability,
fosters a deeper understanding of customer preferences, and enables more effective
strategic planning, ultimately providing a competitive edge and ensuring long-term
sustainability (Tim Stobierski, 2019).
Supplier Collaboration: Strengthening supplier collaboration is crucial for any
business, transforming the supply chain from a transactional relationship into a
strategic partnership. This close collaboration facilitates proactive quality control,
ensuring consistent standards and reducing defects. Improved communication and
responsiveness minimize disruptions and lead times, while optimized processes
result in cost savings. Joint problem-solving and innovation further enhance
efficiency and product development, ultimately building a more resilient and reliable
supply chain (Richard Teuchler, 2025).
Customer Focus: Customer focus is an orientation where the business centers the
customer’s needs, preferences, goals and habits in making decisions. A customer-
focused strategy pushes the company to consider how every product or service
decision supports the customers’ needs and goals, rather than the company’s
(Shopify, 2024).
Prioritizing customer focus through addressing complaints (via Pareto
analysis) and monitoring satisfaction (via control charts) cultivates stronger customer
relationships and loyalty for Gela's Wardrobe. Effectively resolving issues
demonstrates commitment to customer needs, fostering retention and increasing
lifetime value. This leads to positive word-of-mouth marketing, enhances brand
reputation, provides valuable feedback for improvement, and ultimately establishes a
significant competitive advantage in the marketplace.

14
 Chapter 5
Conclusion

This Quality Assurance Plan provides a comprehensive revitalization strategy

for Gela's Wardrobe, addressing the critical issues that led to its bankruptcy. The
plan leverages a customer-centric approach, incorporating an omni-channel sales
strategy and expanded product offerings to cater to a wider market. Operational
improvements, including robust inventory and supply chain management, coupled
with stringent financial controls and data-driven decision-making using tools like
VSM, Pareto charts, and control charts, aim to create a sustainable and profitable
business model. The plan's emphasis on continuous improvement (Kaizen) and
proactive risk management positions Gela's Wardrobe for long-term success,
provided consistent monitoring of KPIs and adaptive responses to market changes
are maintained. The successful implementation of this plan will depend on
effectively addressing the identified weaknesses and consistently applying the
proposed strategies.

15
REFERENCES:

Abby Jenkins (2025, April. What Is Demand Management: Functions, Process and
Examples. [Link]
management/[Link]

Azzahrah, A. A., Rakib, M., & Jufri, M. (2023). Product diversification to increase
consumer satisfaction: A development research study. International Journal of
Current Science Research and Review, 6(11), 7291–7296. [Link]
content/uploads/2023/11/[Link]

Blogs. (2024, November 24). Why supplier evaluation matters for business success.
SpendEdge. [Link]

Blog. (2023, April 12). Importance of contingency plan. Trystar.

[Link]

Blog (2025, March 26). The Key to Business Growth: Strategic Assessment and
Planning with your Partners. [Link]
strategic-assessment-and-planning-with-your-partners/

Bowman, K. (2023, December 5). Mastering real-time monitoring: Benefits, features,

and best practices. Pathlock. [Link]

Chen, Y., & Kaya, M. (2019). Dynamic pricing under inventory and capacity
constraints. European Journal of Operational Research, 275(1), 247–259.
[Link]

Chris Petty (2023, Apr 6). Understanding the Cost-Benefit of Staffing.

[Link]

Elmaghraby, W., & Keskinocak, P. (2003). Dynamic pricing in the presence of

inventory considerations: Research overview, current practices, and future
directions. Management Science, 49(10), 1287–1309.
[Link]

16
Feng, Y., & Xiao, B. (2000). A service-level analysis of inventory policies in a
periodic review system with capacity constraints. International Journal of Production
Economics, 68(3), 245–256. [Link]

Jasmine Nguyen (2025, March 21). Power of Kaizen: How Continuous Improvement
Drives Success. [Link]

Juran (2024, Feb 10). How can lean manufacturing help my business.
[Link]

Indeed Editorial Team. (2024, August 21). Importance of target scope. Indeed
Career Guide. [Link]
scope-of-a-project

ndeed Editorial Team (2025, March 26). Outsourcing Strategy: Examples, Benefits
and How To Build.
[Link]

Infosys BPM (2024, Sept 23). The impact of optimised supply chains on businesses.
[Link]
[Link]

Gisma University (2025, January 29). Why is Marketing Management Important to

business. [Link]
businesses

Kate Gibson (2024, May 10). Dynamic Pricing: What It Is & Why It's Important.
[Link]

Kenton, W. (2024, February 26). Operating expense (OpEx) definition and examples.
Investopedia. [Link]

Maud Castelijin (2025, Apr 3). What is Surge Pricing.

[Link]

17
MBA School Team. (2024, January 2). Production capacity. MBA Skool.
[Link]
terms/[Link]

NetSuite. (2022, July 21). What is customer lifetime value (CLV) & how to calculate?
NetSuite. [Link]
[Link]

ProductWind. (n.d.). The art of leveraging peak events: Maximizing consumer

purchasing behavior. ProductWind. [Link]
leveraging-peak-events-maximizing-consumer-purchasing-behavior

Richard Teuchler (2025, Feb 12). Understanding Supplier Collaboration: Importance,

Benefits, and Strategies. [Link]

Rob O'byrne (2024, Dec 4). How to Mitigate Risk in Demand Driven Supply Chains.
[Link]
chains/

Seaman, M. (2024, September 9). Effective cost reduction strategies for business.
SwipeSum. [Link]
for-businesses

Sarah, S. (2023, June 11). Guidelines in staff capacity building. LinkedIn.

[Link]
chrmp-cpd

Shopify (2024, Dec 10). Customer Focus Benefits.

[Link]

Stevans, C. (2022, November 30). Why is inventory management important.

[Link]. [Link]
inventory-management-important/

Talluri, K. T., & van Ryzin, G. J. (2004). The Theory and Practice of Revenue
Management. Springer Science & Business Media.

18
Taylor & Francis. (2024, February 20). The impact of online and offline experiences
on the repurchase intention and word of mouth of women’s fashion products with the
intermediate trust factor. Cogent Business & Management, 11(1).
[Link]

Time Stobierski (2019, Aug 26). The Advantages of Data-Driven Decision-Making.

[Link]

Wei Xiao & Kai Li (2024, September 25). Capacity sharing between competitors
considering consumer switching.
[Link]

William. (2023, July 16). Why phased rollouts are the key to better product launches.
DevCycle. [Link]
product-launches

Winter, L. (2024, January 8). Prioritization of projects. TeamGantt.

[Link]

Yehiav, G. (2019, September 26). Identifying omnichannel risk and opportunities with
prescriptive analytics. Total Retail. [Link]
omnichannel-risk-and-opportunities-with-prescriptive-analytics/

Zhang, D., & Adelman, D. (2009). Dynamic pricing with demand learning and
reference effects. Operations Research, 57(5), 1169–1188.
[Link]

19