LL Bean Inc Item Forecasting and Inventory Management Case

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Emily A


Date added:

May 19, 2015








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Demand at the item level is hard to predict because it is affected not only by competition, the economy, weather, but also by customer behavior. Basically, LL Bean people forecasted using rules of thumb. Product people with buyers for each demand center meet together and after discussion and arguments, they developed preliminary item forecast by book...
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This time depend on the production lead time of the vendors which was eight to twelve weeks. These times were important for LL Bean because after observing some early-season demand, they could place a second order to vendors in order to meet late-season demand. The number of units to stock was generally not equal to the forecast demand, but it was determined using historical forecast errors...
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