Documente Academic
Documente Profesional
Documente Cultură
• Fashion Retailer
• Responds quickly to market signals
• Gross Margins high
• Inventory Turns high
• ROE/ ROA low
2
Q.1 What is SPARCS system? Examine World’s
inventory and financial performance to
understand how successful the system was.
SPARCS system
Markdown
World Co. 11% of total sales/year
American Women’s Apparel Store 31.8% of total sales/year
Q.2 Examine the features of fashion apparel
retailing in Japan. How can a company use its
supply chain to compete in this environment?
• One of the largest and sophisticated clothing market
in the world
•Domestic manufacturing
•Short lead time
•Fast transportation
•Close collaboration of design & mfg
•2-3 wk replacement
•Flexibility of factories
•Small batch production
• Maintain relationships with manufacturers through
network of business affiliations
• Domestic factories were considered over overseas
factories as they could respond quickly
• Factory was informed in advance of fabric and about
inspection
• CAD was used to cut the fabric
• Maintained an inventory of undyed fabric for faster
response times
• Line workers were versatile
• Measurements & patterns were sent electronically
from headquarters to factories
• Factory maintained small batch sizes to undertake
several different operations
• Major new collections were introduced twice
annually
• To preserve brand focus, designers identified with
the target customer
• Appropriate mechanisms to link dyeing facilities,
suppliers, manufacturers and World in an integrated
supply chain
Q.5 Explain the method of initial demand
forecast and aggregate demand forecast at
World for SKU level forecasts.
Initial demand forecast
Yen Nos
Category Sweaters 30 %
19
Q.6 Explain the Obermeyer Method used at
World for SKU level forecasts.
OBERMEYER METHOD for SKU
Level Forecast
• To derive demand forecasts
• To derive associated standard deviation of demand
• “Obermeyer Vote Meetings” – held twice in a year,
where 20 store managers & assistants from all over
Japan participated.
• Autumn-Winter collections in June & August
• Spring-Summer lines in December & February
– Store personal were shown the planned product
and were asked to predict its popularity.
Obermeyer Method Participants
• Participants invited to World’s Tokyo office to view
coming line