Supply Chain Management at World Research Proposal

The Japanese retail industry has intricate processes that keep demand management and inventory and production management efficient as a hybrid process that mixes automation and manual work. Given how many of the processes in the Japanese retail industry are comprised of manual and automated approaches to coordinating and communicating, it would take years for an outsider to understand how these specific processes interrelate to each other. Another factor that would significantly limit the potential of a non-apparel chain to replicate World's supply chain is the intensive coordination it allows production workers have, including their ability to create higher levels of process innovation vs. more traditional assembly line workers. Another factor is the intricate demand forecasting and aggregate demand practices World relies on. The specific approaches to forecasting for the Untitled line is also highly specific to Japanese retailing, and could not be easily imitated by outsiders, as this process builds on knowledge generated within the retail stores. Foremost among all these limitations is the fact that World is becoming a learning organization, and has defined processes for transforming learning into more efficiency and accuracy in their supply chains.

Consider chapter 4 ("The demand management process") in the text. List approximately ten (10) key issues/points from the case and then integrate/support them with material from chapter 4. Provide specific page numbers to identify the material from chapter 4. In your opinion, does the World Co. policy and procedures support the text's perspective on demand management - yes or no, and why? Use bullet points to answer the "ten key issues/points" portion of this question.

The World Co supports the text's perspective on demand due to the following key factors. World Co has worked to define demand management as integral to their forecasting, inventory production and planning, manufacturing and retailing operations. The following are the ten key issues or points that support the demand management process:

The iterative approach to defining forecasts based on developing initial demand forecasts, then updating these forecasts based on sales data is consistent with the text.

Segmenting distribution-side and category-side forecasts seeks to balance the requirements from suppliers with the demands from the distribution channels while attaining optimal product mix levels.Aggregate demand forecasting processes that include macro-economic variables and the development of a Market Management System (MMS) that consolidates all data and interprets its impact on forecasting is also mentioned in the text.

Development of interactive forecasting strategies based on the Plan Do Check Act (PDCA) approach to iteratively refining forecasts.

Aligning demand management to support more rapid and accurate new product introduction strategies, including the continual refining of underlying processes to make the new product development and introduction process more efficient.

Individualized SKU forecasting and ranking by seasonality, including supply chain forecasting to the raw material level.

Using Inventory and Production Planning to seek Economic order Quantities (EOQ) for products with rapid product lifecycles. This is the case of how World is using Materials Preparation to accomplish more efficient planning at the beginning of each product's lifecycle.

Development of a coordinated supply chain system (SPARCS) that encompasses product planning, product development, production, manufacturing and logistics is consistent with the texts' analysis of demand management platforms.

Use of Pareto Analysis to define the optimal mix of SKUs by fabric and size, as is shown by the Obermeyer Method. The use of Pareto Analysis to gain insights into how the optimal mix of products can be forecasted as part of the demand management phase of supply chain operations.

Reliance on channel and retail sales management to assist in fine-turning demand forecasts, which is shown in t he case study through the use of the Obermeyer Method.

References

Chang Hwan Lee, Byong-Duk Rhee. "Optimal Guaranteed Profit Margins for Both Vendors and Retailers in the Fashion Apparel Industry. " Journal of Retailing 84.3 (2008): 325-333. ABI/INFORM Global. ProQuest. 15 Sep. 2008

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