Sport Obermeyer

The current demand forecasting method is based on qualitative techniques more than quantitative ones. If the forecast is not accurate, the company would carry both inventory and stock out costs. It might lose customers due to shortage of supply or carry additional holding costs due to excess production. If the actual demand doesn’t match the forecast ones, and the forecast was too high, this will result in high inventories, obsolescence, asset disposals, and increased carrying costs. When a forecast is too low, the customer resorts to a competitive product or retailer. A supplier could lose both sales and shelf space at that retail location forever if their predictions continue to be inaccurate. The tolerance level of the average consumer

* Forecasting is an impartial strategic ingredient that will ensure apt base for reputable planning. Our forecast is always the first step in developing plans in running the business along with our future plans of growth strategies. With this tool, we are able to anticipate our sales within reason that then can allow for us to control our costs in conjunction with inventory which will then help us to enhance our customer service. Sales forecasting is a vital strategic tactic in our company’s methodology.

In an article published on the Harvard Business Review website we see that “a factory needs to be flexible and respond to customer orders quickly” (Upton 1995). As the global market for products is growing factories need to be able to keep up with the demand of products in many more countries than they had in years past. Managers have to make decisions on whether or not to expand a factory or build a new factory and the decision between the two have large differences in cost. Forecasting can help managers decide if they should expand or not expand. Capacity does not need to be crowded because that can lead to decrease in quality of products and can cause underproduction. Capacity decisions are one of the toughest decisions manager have to

3. To address the demand that is not at the level of the planning horizon we continue to view the data from a yearly projection versus monthly. When MPBC is focused on a long term plan, there is an increased likelihood to consistently have the bicycles in stock that its satellite stores need. When supply meets demand, another distributor does not have to be used, thus increasing overall profits. Also having a grasp on yearly demand can better predict how many times per year orders need to be placed. When we can find an ideal number of inventory and number of orders needed, the ordering cost is reduced. All forecasting data is working toward the same end goal which is reducing bottom line costs, and increasing

apparel products which are effected by many factors such as weather, actions of opinion leaders and other external factors such as economic fluctuation. In order to deliver the apparel items on time, suppliers need to start the production at a very early stage in which no up-to-date sales information is available to be used as a reference for the ordered quantities. (cite). inaccurate forecasting may lead stock outs or high inventory, sale lost.

M&L Manufacturing Company is an example of a company that could benefit from forecasting. In the past the company has made an educated guess to determine necessary production for

But even this is not possible in case of a new product or innovation. A forecast of sales, demand, cash, requirements and several such business valuables are extremely essential for a business in order to be able to appropriately plan and conduct its operations in an effective and efficient manner. Yet, forecasts cannot be made accurately as there are several factors and changes in the current environment that leads to variations in forecasts and impacts or causes a manager to make changes in the forecasts.

In the current situation, Obermeyer is facing four broad issues: production planning for their short life cycle products, operational changes to reduce costs of mismatched supply and demand, coordination issues in their global supply chain and a confusion of where to produce the garments – Hong Kong or China. The best way to mitigate the inability to meet the demand of retailers during peaks sales would be to forecast the demands with either past data or with the help of a forecasting committee. It would be ideal for Obermeyer to forecast future demand with the help of a forecasting committee. To come over the confusion of which city to continue production in, Obermeyer should choose to continue short term production in Hong Kong but the Long Term production should be in China. It is anticipated that a two years lead time of planning and production activity must take place prior to the actual sale of products to consumers. They are more highly skilled and typically trained in a

3. Most managers of Wings & Legs see the exchange of tactical information about (price)

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.

The concept of demand forecasting more accurately measures and predicts the changes and opportunities in the supply chain.

Business forecasting is the process of studying historical performance for the purpose of using the information gained to project future business conditions so that decisions can be made today that will assist in the achievement of certain goals. Forecasting involves taking historical date and using it to project future data with a mathematical model. Forecasts are extensively used to support business decisions and direct the work of operations managers. In this paper I will introduce different types of forecasting techniques.

The case involves trying to improve the market share and increase the profits of DuPont’s carpet fibres division. Over the years, the performance of the carpet fibre division has been getting poorer due to various reasons. Some of them are customer behaviour, customer expectations, competition within the industry as well as from competitors in similar industries, and also lack of knowledge and training in the entire supply chain. Using of technology, combining vertical and horizontal integration and changing with the changing trends and demands are crucial. Understanding your market and target audience along with being able to establish and cater to new ones are ways in which some solutions to these problems can be devised.

Demand forecasting is synchronized among the various suppliers and manufacturers in the supply chain is taken up under collaborative planning and every link that is present in the chain is connected through technology that consists of a central database and a satellite

Having a reputation as a craftsman of fine furniture, Rodolfo is well-positioned in a lucrative market to continually growing sales over time. What he lacks relative to competitors however is greater visibility into customer demand and the ability to take a forecast and create a production schedule that can be efficiently and profitably produced. The first step in creating a control system for Rodolfo needs to be a forecasting module or component to capture customer demand. An effective forecast system will take all customer demand across all sales channels, aggregate it and then translate it into production schedules to streamline the operations of a business (Li, Moselhi, Alkass, 2006). This is the first phase of the system he needs to