Management Consulting
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Q. 5. What should LL Bean do to improve its forecasting process?
When they forecasting the next season, they have meeting with merchandising, design, product and stock specialist in ninth month ago. They are following discussion as below step.
* Target season : 1991.Fall
* Begin season : 1990. Oct.
* Preliminary forecast sales total :1990.Dec.
* Preliminary item forecast : 1990.Dce to 1991. March.
* Begin layout and pagination of book : 1991. Jan
* Initial commitment to Vendor : 1991. Jan~Feb.
* Revised and finalize : 1991. May.
* Black and white version lay out : 1991. Early July.
As above mentioned, they are prepared to forecast next season at least nine month ago.
Scott Sklar was a buyer for mens shirt. He should have data on actual and forecasted demand of the item that were previously introduced as new item.
It will give him an idea about various costs that go on in launching a new item.
He should have information on selling price which will be determined after consulting with the marketing, sales and production department of L.L Beans. It will be useful for both the company and Scott. Information on cost of sales, commissions provided (if any) for sales, stock outs and backorders cost are relevant in his decision making.
He can get sales information on a new catalogue item by comparing it with that of Beans competitors similar item and by consulting with the marketing department. It will help him