Inventory and Reebok

During the game, I realized that wide gaps in orders of every role in the supply chain such as factory, distributor and retailer create inventory management challenges. For example, distributor records 0units between week1-week 4 compared to retailer within the same period. The retailer records 3units, 5units, 2units and 2units between weeks 1- week 4. The same applies to factory with 0units from weeks 2-4. Addressing inventory management problems requires developing an average unit level to avoid disappointing customers when demand

Company is facing a challenge of potentially higher inventory costs. Rising prices may further result in changes in customer behavior and preferences.

The customers, wholesalers and retailers may order in large quantities with the expectation that they will receive a greater allocation of products that are in short supply. The impact on the supply chain is significant as the forecasted demand is greatly, and unrealistically, increased with these inflated orders. Eventually orders disappear and cancellations pour in, making it impossible for the manufacturer to determine the real demand for its products

Schenck, J., McInerney, J. 1998. Applying vendor-managed inventory to the apparel industry. Automat. I.D. News 14(6) 36-38

Apple Inc. is one of the largest technology companies in the world. The company develops consumer electronic gadgets such as smartphones, computers, desktops, laptops, iPods and tablets. The company was formed in 1976 by Steve Jobs with an intention of making computers but later it changed its focus to include the manufacturing of consumer electronics. However, the company was dealt a big blow when its chief executive officer and founder Steve Jobs died. The company will therefore have to search for ways in which it will maintain its market dominance as well as capture new and emerging markets. This research therefore seeks to establish how Apple forecasts demand and manages its inventory (Apple Computer Inc., 2006).

Within the retail environment, scheduling and a rapid response to changing consumer sentiments are critical. As such, the organizations systems must reflect this change in consumer dynamics to maximize sales and profitability. A systems approach works well in accomplishing this task. In many instances, consumer demand, consumer sentiments and macroeconomic factors all influence one another. In the context of Macys, macroeconomic factors determine consumer demand and confidence. Attempting to forecast this demand, the organization must then adjust scheduling and inventory levels accordingly. The input elements in this system would therefore be aligned with macroeconomic considerations. Aspects such as income growth, discretionary income, consumer confidence, tax policy, and commodity prices all affect the system. For instance high gas prices, can potentially cause less discretionary income for individuals. This lack of discretionary income ultimately hinders the amount of spending on discretionary items. This lack of spending impacts Macys on the output side as the company must now lower inventory levels or markdown merchandise to compensate consumers. Therefore inventory management is critical system in which Macys can use to add value to the consumer, the company, and its

Considering these above mentioned features, to take over the company, it is essential for Joe Jr. to take due attention to a proper approach for inventory management, calculate an appropriate inventory level for each product, making it in line with the company’s business strategy, the market demand in the upcoming period:

When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.

On the other hand, we see that Reebok had a somehow constant Profit Margin around 8.5%.

My decision is to find a methodology of calculating more accurate demand and supply figures to address the unpredictable world of short life cycle fashion. A good decision would result in minimizing the order cycle lead time necessary to produce the ski wear and have it delivered to retailers in time by establishing a method that would ensure each prediction as a personal decision making process and not the thoughts of a few strong-willed individuals. Another criterion would be by gathering data that would provide clear indication how end-consumers would respond to the company’s current line. A good solution would enable Obermeyer to decide on where and when to source each product (China vs. Hong Kong vs. an alternative

The Specialty Toys Company faces a challenge of deciding how many units of a new toy should be purchased to meet anticipated sales demand. If too few are purchased, sales will be lost; if too many are purchased, profits will be reduced because of low prices realized in clearance sales. Here, I will help to analyze an appropriate order quantity for the company.

This report provides the analysis and examples of inventory management system and forecasting methods of Walmart. Methods of analysis and evaluation include Walmart strategic vendor partnerships, fewer links in supply chain, cross docking, and technology. Results of methods mentioned show Walmart accruing a high inventory turnover ratio of 8.1 (Bloomberg). In comparison to other retailer on regional and global scale Walmart hits industry highs with 71.9% in market share

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

Hugo Boss has become known as an industry trend setter for its high quality men’s and women’s fashion apparel, shoes, and accessories. Product leadership, intimate knowledge of their market and customers, and operational excellence are what distinguish the company from others in the luxury fashion goods industry. From an operational perspective, the variability that exists as a result of designing and manufacturing short run fashion products is high. This perpetual shifting of demands and preferences makes it difficult to maintain accurate industry forecasts that result in high risk actions as manufacturing products with no guarantee of sale leading to large scale inventory systems.

On a like-for-like basis, Reebok segment sales declined by 5% in 2007. At TaylorMade-Adidas Golf, currency-neutral revenues increased 1%, negatively impacted by the divestiture of the Greg Norman Collection wholesale business. On a like-for-like basis, TaylorMade-Adidas Golf sales increased 9%. Sales in the HQ/Consolidation segment decreased by 60% on a currency-neutral basis, mainly due to the expiration of the Salomon footwear sourcing cooperation agreement. Currency translation effects negatively impacted sales in all segments in euro terms. Adidas sales increased 7% to € 7.113 billion in 2007 from € 6.626 billion in 2006. Sales at Reebok decreased 6% to € 2.333 billion versus € 2.473 billion in the prior year. TaylorMade-Adidas Golf sales declined 6% to € 804 million in 2007 from € 856 million in 2006. HQ/Consolidation sales decreased 62% to € 48 million from € 129 million in the prior year. (Adidas-group factsheet 2007).The merger and acquisition has gone beyond expectation. Although there were reports of declining sales of Reebok in the North America in the early years of its acquisition but this was due to the currency-neutral sales in the Reebok which is now associated to the turnover. But in later years, beginning 2010 despite the economic turmoil in US and Europe the Adidas Group together with other subsidiary products continues to boost its sales.Such increases are