Figure 7. Conceptual Assortment Planning Model: A0 Diagram

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1 Forecasting future demand Rapid fashion change Subjective decision 45 Planning sales goal & Inventory control plan Target market demand Local retail competition Store alteration Promotional plan Women's wear trend Seasonal demand Economic condition Stock turn 0 Establish an assortment plan A0 Style selection Color selection Size selection Style quantity Color quantity Size quantity Stock Keeping Unit A2 A3 A4 A5 A6 A7 Assortment planning process Figure 7. Conceptual Assortment Planning Model: A0 Diagram

2 Recognize problem Search information A2 Forecast fashion A3 Evaluate qualitatively A4 Forecast Product Selection A6 46 Evaluate quantitatively A5 Sizes Colors Styles Forecast Sales A7 Style volume Color volume Size volume Figure 7-2. Conceptual Assortment Planning Process ( to A7) (Continued)

3 Time limit for thoughtful consideration Sales goal New policy Sales lost New circumstance Deficiency of stock Assortment Problem Sales success Season change Inventory control plan Recognize problem New product selection Dissatisfaction of current stock Financial change Sales goal for Dresses sales goal inventory control promotion plan product mix A2 47 Time limit for thoughtful consideration Sales goal New policy Sales lost Sales success Season change Inventory control plan sales goal Define desired state inventory control promotion plan 1 last assortment plan Changes in market trend Changes in product demand Dress market competition Dress promotion plan Seasonal demand Economic condition Dress stock turn 2 Aware discrepancy between current state & desired state 2 New circumstance Deficiency of stock Assortment problem New product selection Dissatisfaction of current stock Financial change A21 Figure 7-3. Conceptual Assortment Planning Model: Problem Recognition (1-2) (Continued)

4 Reliability of information Sources Not established methods Difficulties in organizing sources Biased opinion Internal sources 2 External sources Search information to search and summarize information to reduce assortment problems Summary of style information Summary of color information Summary of size information Sort & Code data A3 A2 Biased opinion Not established methods 48 Merchandise report Buyer's own knowledge Sales record Sales people's opinion Product function Search & organize internal sources A211 Style information Color information Size information Operational activity Sort & Code data A221, A222, A223 Reliability of external Sources Not established methods Competitors Customer panel Consumer magazines Fashion forecast services Vendor opinion Trade press Trade show Reporting bureaus Geographic area of market Operational activity Search & organize external sources Sort & Code data A212 Style information Color information Size information A221, A222, A223 Figure 7-4. Conceptual Assortment Planning Model: Information Search (A2, A211-A212) (Continued)

5 Reliability of information Sources Not established methods Difficulties in organizing sources A211 Summarize style information Summary of style information A212 Sort & code data for style A221 A31 & A311 Reliability of information sources Not established methods Difficulties in organizing sources A211 A212 Summarize color information Summary of color information 49 Sort & code data for color A222 A32 & A321 Reliability of information Sources Merchandise report Sales record Product function Manufacturer's opinion Demographic information Reporting bureaus Summarize size information A223 Summary of color information Analyze data for size A43 Figure 7-5. Conceptual Assortment Planning Model: Information Search (A221,A222, & A223) (Continued)

6 Rapid fashion change Reliability of data Biased opinion Unexpected fad Fashion selling period Color trend A2 Forecast fashion Style trend Product characteristics A3 Product life cycle forecast Mapping Counting Product life cycle A4 & A5 Rapid fashion change Biased opinion Unexpected fad Reliability of data A221 Determine style trend Style trend Determine style life cycle Expected life cycle for the style trend A31 A Operational activity Mapping trend Counting style A311 Style life cycle A41 Rapid fashion change Biased opinion Unexpected fad Reliability of data A222 Determine color trend Color trend Determine color life cycle Expected life cycle for the color trend A32 A321 Operational activity MappingCounting trend colors A321 Color life cycle A42 Figure 7-6. Conceptual Assortment Planning Model: Fashion Forecast (A3, A31, A311, A32, A321) (Continued)

7 A3 : Merchandise plan Product criteria Product instruments Sample products 1 Evaluate qualitatively to Evaluate alternative products & Predict demand from qualitative aspects of the products Rate satisfaction Biased opinion Rank importance A4 Style qualitative Color qualitative Size qualitative A5 & A6 Biased opinion Product Evaluation Criteria Aesthetic criteria Color/ Pattern/ Styling Fabric/ Detail/ Total balance Situational usage Versatility Coordination effect Fashion sensitivity Predicted demand Performance criteria Fit/ Easy care Comfort/ Durability Quality vs. cost Qualitative NODE: A4 TITLE: NO.: criteria 1 51 Sample products A31 & A311, Merchandise plan Product criteria Product instruments Style qualitative Rating satisfaction A41 Rank importance Style qualitative A51 & A61 Biased opinion A32 & A321, Merchandise plan Product criteria Color qualitative Rating satisfaction A42 Rank importance Color qualitative A52 & A62 Biased opinion A223, Merchandise plan Size qualitative A43 Discuss appropriate size variation Size selection A63 & A73 Figure 7-7. Conceptual Assortment Planning Model: Qualitative Evaluation (A4, A41,A42, & A43) (Continued)

8 2 Constraints Technical difficulties Time constraints Limit of sales record Expenses of pilot study Not clearly identified but expected constraints are illustrated NODE: A5 TITLE: Constraints NO.: 2 Past sales record A4 A3: Trend life cycle Evaluate quantitatively Predicted demand of styles Predicted demand of colors A5 Predicted demand of sizes 52 Configuration Past sales Qualitative Results Life cycle Pilot study 3 A6 & A7 Mechanism of Quantitative Evaluation With past sales record Decomposition Product life cycle for each product Expotential smoothing Regression With qualitative results Jury of executives opinion for quantitative demand Monitoring major centers of fashion creativity With trend life cycle forecast Historical continuity of fashion change Trends in consumer expenditure Pilot test Consumer survey or panels Test marketing of new style Mechanism of NODE: A5 TITLE: NO.: Quantitative 3 Figure 7-8. Conceptual Assortment Planning Model: Quantitative Evaluation (A5) (Continued)

9 2 Time Technical constraints difficulties Limit of sales record Expenses of pilot study Past sales record A41 A311 Evaluate style sales value & Predict demand A51 Summary of style sales value & demand Past sales Life cycle Configuration qualitative results Pilot study A61 & A71 2 Technical Time difficulties constraints Limit of sales record Constraints Not clearly identified but expected constraints are illustrated NODE: A5 TITLE: Constraints NO.: 2 53 Past sales record A42 Evaluate color sales value & predict demand Summary of color sales value & demand A312 A51 Life cycle Configuration Pilot study qualitative results A62 & A72 Past sales record A43 Not established size standard Evaluate size sales value & predict demand A53 Summary of size sales value & demand Jury of executives' opinion Tradition A63 & A73 Figure 7-9. Conceptual Assortment Planning Model: Quantitative Evaluation (A51,A52, & A53) (Continued)

10 Not identified 4 Style selection plan A4 Forecast product selection plan Color selection plan A5 A6 Size selection plan A7 Compensatory Conjunctive Lexicographic 54 Functions of Forecasting Product Selection Determine breadth & depth Determine product selection plan Establish decision s Establish decision standard Select products Functions of Forecasting product NODE: A6 TITLE: NO.: selection 4 Figure Conceptual Assortment Planning Model: Forecasting Product Selection (A6) (Continued)

11 Not identified A41 Select styles Style selection plan A51 A61 Conjunctive Compensatory Lexicographic A71 Not identified A42 A52 Select colors Color selection plan Breadth & depth A62 55 Conjunctive Compensatory Lexicographic A72 Not identified A43 A53 Select sizes Size selection plan Breadth & depth A63 Conjunctive A73 Figure Conceptual Assortment Planning Model: Forecasting Product Selection (A61, A62, & A63) (Continued)

12 Not identified 5 A5 A6 Forecast sales to determine sales for each item Style order quantity plan Color order quantity plan A7 Size order quantity plan 56 Compensate breadth & sales goal depth Compensate quantitative inventory control plan results Inputs to Forecasting Sales Style selection plan Summary of quantitative results Sales goal Sales goal & inventory control plan Initial markup for period Planned net sales Beginning of the months Planned ending inventory Planned markdown Planned purchase time NODE: A7 TITLE: Inputs for forecasting sales NO.: 5 Figure Conceptual Assortment Planning Model: Forecasting Sales (A7) (Continued)

13 Not identified A51 Forecast each style sales Style order quantity A61 A71 57 Compensate sales goal breadth & depth Compensate inventory control plan quantitative results A52 A62 Breadth & depth Not identified Forecast each color sales for a style A72 Color order quantity breadth & depth Compensate inventory control plan quantitative results A53 A63 Not identified Forecast each size sales for a style Size order quantity Breadth & depth A73 breadth & depth Compensate quantitative inventory control plan results Figure Conceptual Assortment Planning Model: Forecasting Sales (A7) (Continued)