Will cover the risks and consequences of our inaccurate forecasts. I entrust address the short-term and long-term implications of sourcing in Hong Kong verses China.
Our goal is to stick out complete collections to our retail customers on quantify in the well-nigh efficient and cost effective method possible sequence at the same time reducing markdown issues and stockout sales losses.
sales - $32.8M
45% commercialise share Childrens
11% Market share Adult
Key deliver matching collections of products to the retailers at the same time.
Deliver early in the selling season.
Wally Obermeyer
transgression President
November 1992
ISSUE IDENTIFICATION
IMMEDIATE ISSUES:
The current problem is specifically relate to the difficulty that the company is facing in balancing the align impartments we need to make against the risk associated with any inaccuracy in our lead forecasts. There has been greater difficulty in matching our affix with the consumer demand, this issue is aggravated by the fact that our cycle time from Product Design to Delivery to the customer (retailers) is about 1 ½ years. This exaggerated time line makes it very difficult to fix accurate sales forecasts, which are not available until later the Las Vegas trade show in March 1993.
I give way been given the task of figuring out the correct target quantities and manufacturing source for this upcoming selling season. I need to commit to the initial order occupation of 10,000 units by November 1992. The second production other of 10,000 units can be placed after the Las Vegas expressive style show in March 1993. After the Las Vegas show, we will take for authoritative about 80% of our retailers orders. The agile issues we are having are caused by a number of imperious issues as outlined below.
ENVIRONMENTAL AND ROOT CAUSE ANALYSIS
general ISSUES:
1.Inaccurate Forecasting Production Quantities
NATURE: Strategic
a.Delayed feedback from customers (Feedback is received after the Las Vegas show ...If you want to get a sound essay, order it on our website: Orderessay
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