Figure 8-1. Practical Assortment Planning Model: A0 Diagram

Transcription

1 100 A0-1 Difficulties in forecasting future demand A Definitions of Assortment Planning - Consideration the numbers going to have any particular classification within any particular store. - Balance assortments as wide of age group possible then go to specific items. - Breaking down by division & department based on space of store & open-to-buy dollar. - Arrangement of open-to-buy dollars from each store & each vendor to each style & each month. - Plan of quantity of each style with different colors. - The dollar plan for each product category for a season. - Balancing product selection & assorting the quantity of selected products. - Selection without duplication. 2. Overall Difficulties in Assortment Plan - Dramatic change - Limited consideration regarding geographical distribution - Relationship with vendors - Guessing based on past history - Keeping balance - Unpredictable weather pattern. - Predicting customer want. - Too many variations 1 NODE: A0 TITLE: Assortment Planning NO.: 1 & 2 Sales Goal: Open-To-Buy Dollars Develop an assortment plan An Assortment Plan A0 A1, A2, A3, A4, A5, A6, & A7 Figure 8-1. Practical Assortment Planning Model: A0 Diagram

2 Recognize problem A1 Forecast new fashion A2 Evaluate qualitative value of product A4 Select product A6 101 Search information A3 Evaluate quantitative value of product A5 Sizes Colors Styles Determine order quantity A7 Style volume Color volume Size volume Figure 8-2. Practical Assortment Planning Process (A1 to A7) (Continued)

3 Miscomprehension of sales history Difficulty knowing the reason of overstock Closing Pricing Vendors Constraint Fast style Competitionchange. Reliability of customer request data 102 Sales goal Stock Situation Customer Complaints Past Quality Problem Past Relationship with Vendors Market Change Recognize problem Recognized Problem A1 A2 A11 A12 A13 A14 A15 A16 A3 Figure 8-3. Practical Assortment Planning Model: Problem Recognition (A1) (Continued)

4 Sales history Past relationship with vendor Analyze vendor performance A11 Sales history Ranked vendors Analyze product performance A12 product performance direction 103 Past Quality Problem Customer request & complains Realize customer's needs Socioeconomic Market Change A13 Fast market change Consider market change A14 Defined customer needs Defined market direction The reason of overstock & shortage Define problem & direction for new assortment A16 A2 Problem & direction Stock Situation A11, A12, A13, & A14 output Realize the reason of overstock & shortage A15 A3 Figure 8-4. Practical Assortment Planning Process: Problem Recognition Process (A11-A17) (Continued)

5 Closing vendors Competition Miscomprehension of sales history Sales history Past relationship with vendors Analyze vendor performance in sales history. Ranked vendors A11 Miscomprehension of sales history A111A112 A113A114 A12 Sales history by vendors Compare sales of two years Closing vendors 104 A111 Sales history Categorize the gross margin A112 Past relationship with vendors Competition Compare vendor relationship to other companies A113 Rank vendors' performance A114 Vendors Figure 8-5. Practical Assortment Planning Process: Problem Recognition (A11, A111-A114) (Continued)

6 Price competition Miscomprehension of sales history A11 Output Sales history Analyze product performance in sales history. Product performance A Miscomprehension of sales history A121 A122 A123A124 A125 A13 Sales history by product Compare sales of two years Closing vendors A121 Sales history Categorize the net profit A122 Price Competition Rank product performance. A125 Product performance Compare markup or markdown A123 Sales history Compare shortage & overstock product A124 Figure 8-6. Practical Assortment Planning Process: Problem Recognition (A12, A121-A125) (Continued)

7 Reliability of customer request data Customer's request & Complains Past quality problem Realize customer's needs A13 Customer's needs 106 Difficulty observing all stores in big company A131 A132 A133 A14 Observe customers in a store Reliability of customer request or complain data Define customers' needs Customer's needs A131 A133 Customer request or complain file Categorize customer request & complains A132 Figure 8-7. Practical Assortment Planning Process: Problem Recognition (A13, A131-A133) (Continued)

8 Too many factors Stock situation A11, A12, A13 & A14 Output Realize the reason of overstock & shortage Reason of overstock & shortage Customer request A A151 A152 A153 Too many factors A16 Stock situation A11, A12, A13, & A14 Output Identify the types of overstock products A151 Overstock reasons Shortage reasons Illustrate the reasons & recommendations A153 Reason of overstock & shortage Find if there are reasons from merchandise performance Customer request Find if there are reasons from socioeconomic situation Identify the types of shortage products A152 Figure 8-8. Practical Assortment Planning Process: Problem Recognition (A14-A16, A151-A153) (Continued)

9 Discrepancy between customers & vendor collection Long time advance plan compared to fashion change Getting shorter & various fashion cycle Socioeconomic situation Target customer's life style Newspaper TV Magazines & periodical Forecast New Fashion Overall new trend in market 108 Fashion forecasting service Fashion show Common new things among vendors' collections A2 A3 A21 A22 A23 A24 A25 A26 A27 A28 A4 Figure 8-9. Practical Assortment Planning Model: Fashion Forecasting (A2) (Continued)

10 Socioeconomic situation report (A1 output) Consider socioeconomic situation A A1 output Identify customer life style & fashion ability A22 News paper Read news paper A23 TV Magazines & periodicals Catch new trend Fashion forecasting service A24 Defined target customer Have a report A25 Overall new trend Reasons of new trend Overall new trend Detailed new trend New styles & colors Long time advance plan compared to fashion change Vendors' new styles & colors Fashion cycle is getting shorter & various Define overall new trend A16 A3 A4 New trend Fashion show Define new styles & colors A26 Vendors' new collections Identify common new things A27 Discrepancy between customers & vendor collection Figure Practical Assortment Planning Process: Fashion Forecasting (A21-A28) (Continued)

11 1. Constraint in Information Search - Taste gap between vendor information & target customers - Needs of flexibility - Not directly applicable information - Not accurate information regarding competitors - Subjective information - Time constraint of organizing information - Fast style change compared to information - Focusing on target customers from various information - Not established effective information organization system A3 NODE: A3 TITLE: Information Search NO.: 1 Constraints 110 Target market characteristics Customer's request Sales history Test run results Own experience Sales people opinion Vendor opinion Fashion forecasting services Publication Better market trend Competitor's products Street trend Products in market Search Information A3 Assortment Direction A31 A32 A33 A4 A5 Figure Practical Assortment Planning Model: Information Search (A3) (Continued)

12 111 A31-1 Inputs Constraints A31-2 Search style information Style assortment direction 1. Inputs of Style Information Search -Target market characteristics. - Customer's request - Sales history - POS data - Test run data - Own experience - Sales people opinion - Vendor's opinion/ show room/ catalog - Repeated products by vendors in market. - Fashion forecasting services - Publication - Fashion show/ Better market styles - Competitor's products - Street trend 2. Constraints of Style Information Search - Taste gap between vendors & customers - Needs of flexibility - Not directly applicable information - Not accurate information regarding competitors - Subjective information - Time constraint of organizing information - Fast style change compared to information - Screening information for target customers - Not established information organization system - Trusty opinion from vendors NODE: A31 TITLE: Search Style Information NO.: 1 & 2 A31 A311 A313 A315 A317 A312 A314 A316 A318 A41 A51 Figure Practical Assortment Planning Model: Style Information Search A31 Diagram

13 Target market characteristics Identify target customers A311 Sales history POS data Test run data Analyze sales data by style A312 A Note A312 The activity A312 is done by Inventory Control Department as using computer system in all big companies. NODE: A312 TITLE: Analyze style sales history NO.: 1 Sales people opinion Vendor's opinion Forecasting service Gather opinion A313 TV program Observe TV guests A314 Summarize information A318 Style assortment direction 112 Fashion show Publication Watch better market trend A315 People in street Observe street trend A316 Competitor's product & catalog Observe competitors A317 Figure Practical Assortment Planning Model: Style Information Search Process (A311-A318) (Continued)

14 Reliability of customer request or complain data Target market Identification Customer's request & Complains Identify target market characteristics & trend A311 Price range Customer's style needs A A3111 A3112 A318 Target market identification Define the price range Price range Reliability of customer request data A3111 Customer request or complain file Categorize customer request by style A3112 Customer style needs Figure Practical Assortment Planning Process: Style Information Search (A311, A3111-A3112) (Continued)

15 Needs of flexibility Not established information organization system Sales history Test run data POS data Analyze style sales data A312 Past sales trend of basic style Previous year test run results Current sales trend by style 114 Not organized information system A3121 A3122 A3123 A313 A318 Sales history Identify sales trend pattern of basic items past several years Past sales trend of basic styles A3121 Test run sales data Analyze test run results of previous year Test run results Needs of flexibility A3122 POS data Track current sales trend A3123 Sales trend in our store Current sales trend A313 A318 Figure Practical Assortment Planning Process: Style Information Search (A312, A3121-A3123) (Continued)

16 Subjective information Subjective information Time constraint Applicability Trust Own experience Style assortment direction in mind Own experience Remind own experience A3131 Style direction in mind Time constraint to gather information Sales people opinion vendor opinion Fashion forecasting service report Gather opinion A313 Style direction in market Style direction by sales people New style direction 115 Sales people opinion Gather sales people opinion regarding style A3132 Style direction by sales people Trusty opinion Applicability from vendor A3131 A3132 A3133 A3134 A314 A318 Vendor opinion Gather information from vendors A3133 A31331 A31332 A31333 Style direction in market Applicability to target customer Fashion forecasting service report Read reports A3134 New style direction A314 A318 Figure Practical Assortment Planning Process: Style Information Search (A313, A3131-A3134) (Continued)

17 Vendor's catalog File vendor's catalog A31331 Products in catalog Applicability to target market 116 Vendor show room See actual products in show room A31332 Actual products Trusty opinion from vendors Opinion & their sales record Pinpoint repeated products among vendor's A31334 Style direction in market Current sales trend Vendor's sales record Listen vendor's opinion A31333 A3134 Figure Practical Assortment Planning Process: Style Information Search (A3133, A31331-A31334) (Continued)

18 Fast style change Screening information Fashion shows Watch style trend in better market New style direction Publication A315 A Fast style change Screening information A3151 A3152 A318 Fashion shows Pinpoint repeated styles in fashion show Important new styles Screening information to target market A3151 Publication Make a photo files of new styles in publication A3152 New style direction A316 A318 Figure Practical Assortment Planning Process: Style Information Search (A315, A3151-A3152) (Continued)

19 Constraints A Inputs of Color Information Search -Target market characteristics. - Customer's request - Color sales history - POS data regarding colors - Test run data - Own experience - Sales people opinion - Vendor's opinion/ show room/ catalog - Repeated products by vendors in market. - Color forecasting services - Publication - Fashion show/ Better market styles - TV - Competitor's product & catalog - Cosmetic trendy colors 2. Constraints of Color Information Search - Difficult to know target customers preference. - Vendor's limited colors selection. - Reliability of customer request data - Not established information organization system 118 A32-1 Inputs Search color information Color assortment direction NODE: A32 TITLE: Search Color Information NO.: 1 & 2 A32 A321 A323 A325 A327 A322 A324 A326 A328 A42 A52 Figure Practical Assortment Planning Model: Color Information Search (A32) Diagram

20 Target market characteristics Identify target customers A321 A Note A322 The activity A322 is done by Inventory Control Department as using computer system in all big companies. Sales history POS data Test run data Analyze sales data by color A322 NODE: A322 TITLE: Color sales history analysis NO.: 1 Sales people opinion Vendor's opinion Forecasting service Gather opinion A323 TV program Observe TV guests A324 Summarize information A328 Color assortment direction 119 Fashion show Watch better market color trend A325 A42 Publication Cosmetic trendy colors Pinpoint suggested colors in publication A326 A52 Competitor's product Catalogs Observe competitors A327 Figure Practical Assortment Planning Model: Color Information Search Process (A321-A328) (Continued)

21 Reliability of customer request or complain data Target market Identification Geographic factor Customer's request & complains Identify target market characteristics & trend A321 Customer's color needs A322 A3121 A3212 A Target market identification Geographic factor Define color preference of target market A3211 Overall color preference Reliability of customer request data Customer request or complain file Categorize customer request by color A3212 Customer color needs Figure Practical Assortment Planning Process: Color Information Search (A321, A3211-A3212) (Continued)

22 Not organized information system Sales history Test run data POS data Analyze color sales data A322 Past sales trend of basic color Previous year color test run results Current sales trend by color A3221 A3222 A3223 A Not organized information system A328 Color sales history Identify sales trend pattern of basic colors past several years A3221 Past sales trend of basic color Color test run sales data Analyze color test run results of previous year Test run results A3222 POS data by color Track current sales trend by color A3223 Color sales trend in our store Current color sales trend A323 A328 Figure Practical Assortment Planning Process: Color Information Search (A322, A3221-A3223) (Continued)

23 Trust Subjective Applicability Own experience Subjective information Remind own experience A3231 Color direction in mind Own experience Sales people opinion Vendor opinion Fashion forecasting service report Gather opinion A323 Color assortment direction in mind Color direction in market Color direction by sales people New color direction Sales people opinion Gather sales people opinion regarding color A3232 Color direction by sales people Applicability Trusty opinion from vendor A3231 A3232 A3233 A3234 A324 A Vendor opinion Gather information from vendors A3233 Color direction in market Applicability to target customer A32331 A32333 A32332 A32334 Color forecasting service report Read reports A3234 New color direction A324 A328 Figure Practical Assortment Planning Process: Color Information Search (A323, A3231-A3234) (Continued)

24 Vendor's catalog File vendor's catalog Applicability to target market A32331 Colors in catalog 123 Vendor show room See actual fabric in show room A32332 Actual fabric color Subjective Difference of hue & ton Pinpoint repeated colors among vendor's A32334 Color direction in market Current color sales trend Actual fabric color Watch the difference of tone & hue A3234 A32333 Figure Practical Assortment Planning Process: Color Information Search (A3233, A32331-A32334) (Continued)

25 Screening information Publication Pinpoint suggested colors in publication New color direction A326 A Screening information to target market A3151 A3152 A328 Publication Pinpoint repeated colors through clothes in publication A3261 Repeated colors Screening information to target market Publication Observe new cosmetic colors A3262 New color direction A327 A328 Figure Practical Assortment Planning Process: Color Information Search (A326, A3261-A3262) (Continued)

26 125 Constraints A Inputs of Size Information Search -Target market characteristics (Ethnicity & Age). - Size sales history - POS data regarding colors - Customer request - Own experience - Sales people opinion - Vendor's opinion/ pre-pack/ size-spec - Publication - Test run results - Survey results regarding fit. 2. Constraints of Size Information Search - Needs for accurate demographic information by geographic area. - Vendor's different size spec (e.g., Europe manufacturer) - Minimum quantity requirement of pre-pack regulation. NODE: A33 TITLE: Search Size Information NO.: 1 & 2 A33-1 Inputs Search size information Size assortment direction A33 A331 A333 A335 A337 A332 A334 A336 A43 A53 Figure Practical Assortment Planning Model: Size Information Search (A33) Diagram

27 1. Note A332 The activity A332 is done by Inventory Control Department as using computer system in all big companies. 2. Note A336 This activity is only applied for the case when a buyer had size test-run in previous season. Target market characteristics Identify target customers A331 A332 A332 & NODE: TITLE: Size sales history analysis NO.: 1 & 2 A336 Sales history POS data Analyze sales data by size A332 Sales people opinion Vendor's opinion Gather opinion Survey results A Vendor's suggestion Pre-pack option Size spec Consider vendor's offer A334 Summarize information A337 Size assortment direction Publication Define growing size range A335 A336 A43 Test run results Consider necessity of new size range A336 A53 Figure Practical Assortment Planning Model: Size Information Search Process (A331-A327) (Continued)

28 Needs for accurate demographic information by geographic area Needs for accurate demographic information by geographic area Age Ethnicity Define the age & ethnic group of customers A3311 Defined Age Target market demographic characteristics Define target market Overall size direction 127 Defined ethnicity Compare the size variation regarding style A3312 Past size variation A331 A3311 A3312 A3313 A3314 A332 A337 Consider the fit of styles Overall size direction A3313 Compare the size variation regarding color A3314 Overall size direction A332 Figure Practical Assortment Planning Process: Size Information Search (A331, A3311-A3314) (Continued) A337

29 Sales data Categorize sales data by size variation Problems in size variation Sales data Inventory situation Returned sizes Analyze size sales data Problems in size variation A3321 POS data A332 Inventory situation Consider the frequent shortage or overstock Problems in size variation A3321 A3322 A3323 A3324 A333 A3322 A Returned sizes Consider the return rate due to fit problem Problems in size variation A3323 POS data Observe weekly sales of sizes by POS or by self A3324 Problems in size variation A333 A337 Figure Practical Assortment Planning Process: Size Information Search (A332, A3321-A3324) (Continued)

30 Own experience Color assortment direction in mind Sales people opinion Color direction in market Own experience Remind own experience A3331 Size direction Vendor opinion Results of survey regarding fit Gather opinion A333 Color direction by sales people New color direction Sales people opinion Gather sales people opinion regarding size Size direction by sales people A3331 A3332 A3333 A3334 A334 A337 A Vendor opinion Gather information regarding size sales pattern from vendors A3333 Size sales direction in market Results survey regarding fit Conclude survey results A3334 Problems & direction in size selection A334 A337 Figure Practical Assortment Planning Process: Size Information Search (A333, A3331-A3334) (Continued)

31 Different size spec by vendors Minimum quantity or pre-pack regulation 1. Note A3341 Different Size Spec of Europe Manufacturers Especially, when buyers import from Europe, they have difficulty to adjust the size spec difference in US market. NODE: A3341 TITLE: Consider size spec difference NO.: 1 Vendor's size spec Consider vendor's offer Size spec consideration Options in size assortment Vendor's regulation A334 A Different size spec by vendors A3341 A3341 A3342 A337 Vendor's size spec Consider the difference in size spec among vendors Size spec consideration Minimum quantity or pre-pack regulation A3341 Vendor's regulation Know which regulation each vendor has A3342 Options in size assortment A335 Figure Practical Assortment Planning Process: Size Information Search (A334, A3341-A3342) (Continued) A337

32 1. Constraints in Qualitative Evaluation - Difficulty of balance - Needs for advanced technology - Unpredictable weather change - Vendor obligation - Subjective evaluation - Fast style change - When no history base A4 NODE: A4 TITLE: Qualitative Evaluation NO.: 1 Constraints Information search & fashion forecasting output Target customer characteristics Merchandising concept 131 Own experience Sales history Seasonality Evaluate the qualitative aspects of products Qualitative evaluation results Vendor reputation Vendor opinion Sales people opinion Customer opinion A4 A41 A42 A43 A5 A6 Figure Practical Assortment Planning Model: Qualitative Evaluation (A4) (Continued)

33 A Inputs of Style Qualitative Evaluation - Style information search outputs - Fashion forecasting outputs - Merchandising concept - Sample styles from Europe or better market - Price of products - Brand or vendor reputation - Own experience - Sales people opinion - Colleague's opinion - Customer's opinion - Sales history Small companies use more own knowledge & customer's opinion. Big companies use sample styles & merchandising concepts. Other are used by all companies. 132 A41-1 Constraints 2. Constraints of Style Qualitative Evaluation - Difficulty of matching a satisfactory style with a satisfactory price - The discrepancy between past & future styles - Finding products matching with a merchandising concept (It it is too difficult, there is problem with merchandising concept.) - Too many variation in assortment - Time constraint as covering too many products by one buyer. - Fast fashion change - Not much constraint due to trying a lot of testing before the season. Inputs Evaluate qualitative aspects of style NODE: A41 TITLE: Style Qualitative Evaluation NO.: 1 & 2 Style qualitative evaluation results A41 A411 A413 A415 A417 A412 A414 A416 A418 A51 A61 Figure Practical Assortment Planning Model: Style Qualitative Evaluation (A41) Diagram

34 Difficulty finding matched products Information search outputs Define merchandising concept A411 Own experience Information search output Too many variation Define the depth & width of assortment A412 A426 Manager opinion Buy samples A413 Organize evaluation results Style qualitative evaluation results 133 Own knowledge Sales history Sales people's opinion Customer's opinion Colleague's opinion Predict the product sales ability A414 A424 Get opinions to evaluation A415 A418 A51 A61 Price of products Consider product price A416 Brand or vendor reputation Consider brand or vendor reputation A417 Figure Practical Assortment Planning Model: Style Qualitative Evaluation Process (A411-A418) (Continued)

35 Discrepancy between past & future Fast fashion change Own knowledge Vendor's collection Samples Predict product sales ability Product sales ability Miscomprehension of sales history Sales history A414 Sales history Vendor's collection 134 Evaluate how to update on-going styles A414 Vendor's collection Pinpoint repeated styles by vendors over times A414 A4141 A4143 A4142 A4144 Repeated basic styles Fast fashion change A4145 A424 A418 Sales history Discrepancy between past & future Review sales record A414 Product sales ability Consider new styles Best new styles A424 Vendor's collection A414 New styles Pinpoint prevalent styles in market A414 A418 Figure Practical Assortment Planning Process: Style Qualitative Evaluation (A414, A4142-A4145) (Continued)

36 Own experience Evaluate styles based on own experience Sales people opinion Manager opinion A4151 Evaluation results A4154 Evaluate style by manager & sales people A4152 A4154 Own experience Manager's opinion Sales people opinion Customer's opinion A415-3 Time constraint Gather opinion for style evaluation A4151 A4153 A4152 A4154 A415 Style evaluation results A Customer's opinion Get feedback from customers A4153 Evaluation results Customer feedback A415-4 Time constraint A Note A415-3 Small companies buy and display small amount of certain styles in the beginning of the season and get feedback from customers and sales people. Colleague opinion A4151 output Evaluate styles from style-out A4154 Evaluation results A Note A415-4 Style-out is not an usual method by buyers, but a buyer suggested that some other companies used this method had positive results. Style-out calls the evaluation meeting that colleagues & managers meet to critic product samples or pictures to find what seems to be key styles. A418 NODE: A415 TITLE: Style Qualitative Evaluation NO.: 1 & 2 Figure Practical Assortment Planning Process: Style Qualitative Evaluation (A415, A4151-A4154) (Continued)

37 Price of products Material of product Consider the product price A416 The style quality compared to price The material quality compared to price A417 A4161 A4162 A Product price Compare the design of styles to price A4161 The style quality compared to price Product price Material of product Compare the material quality to price A4162 The material quality compared to price A417 A418 Figure Practical Assortment Planning Process: Style Qualitative Evaluation (A416, A4161- A4162) (Continued)

38 Constraints A Inputs of Color Qualitative Evaluation - Color information search outputs - Merchandising concept or color palette - Vendor's opinion, offering colors, & pre-packs - Style qualitative evaluation outputs - Fashion-ability of products - Sales potential of product - Color quality related to fabric - Sales people opinion - Customer opinion - Sales history Small companies more depend on vendor's opinion, sales people opinion & customer opinion. Big companies more use merchandising concept or color palettes to decide colors of products. 2. Constraints of Color Qualitative Evaluation - Difficulty of finding new colors from old vendors - Limit in color choices when it is pre-packed - Limit of test-run in big companies - Involvement of subjective color taste 137 A42-1 Inputs Evaluate qualitative aspects of color NODE: A42 TITLE: Color Qualitative Evaluation NO.: 1 & 2 Color qualitative evaluation results A42 A52 A421 A423 A425 A427 A422 A424 A426 A428 A62 Figure Practical Assortment Planning Model: Color Qualitative Evaluation (A42) Diagram

39 Information search outputs Identify color palette A421 Color palettes Vendor's opinion Vendor's offering colors Pre-pack colors Consider if vendors offer the colors in palette A422 Style qualitative evaluation output Consider if the colors matched with style A A414 output: sales potential Consider the sales potential of styles A424 Organize evaluation results A428 Color qualitative evaluation results A52 Color with fabric Compare the color quality with fabric quality A425 A62 A412 output Limit the depth of color assortment A426 Sales people opinion Customer opinion Gather opinion A427 Figure Practical Assortment Planning Model: Color Qualitative Evaluation Process (A421-A428) (Continued)

40 Information search output Identify Color palette Color palette A421 A4211 A4212 A4213 A Target market characteristics Define target customer's color by ethnicity & geographical characteristics A4211 Must-have colors related to characteristics Seasonality Information search output Define colors for the season A4212 Color for the season Merchandising concept Color concept A428 Define colors for merchandising concept or color concept A4213 Color palette A422 A428 Figure Practical Assortment Planning Process: Color Qualitative Evaluation (A421, A4211-A4213) (Continued)

41 Difficulty of finding colors from old vendors Limit of choice from when colors pre-packed A421 output Vendor's offer Consider if vendors offer the colors in palette A422 Matched colors from vendors New color palette A423 A4221 A A428 Color palette Ask availability of colors in palettes Matched colors from vendors Vendor's offer A4221 Conflicts in color choice Rearrange color palette if having too many conflicts A4222 New color palette A423 A428 Figure Practical Assortment Planning Process: Color Qualitative Evaluation (A422, A4221- A4222) (Continued)

42 Subjective color taste A422 output Style qualitative evaluation output Consider if the colors matched with style A423 Detailed color palette for each style A Subjective colors taste A4231 A4232 A428 A422 output Style qualitative evaluation output Consider more color choices with basic & trendy colors if the style is basic A4231 Colors for basic styles Subjective color taste Consider new colors choices with more basic colors if the style is trendy Detailed color palettes for each style Color for new trendy styles A4232 A424 A428 Figure Practical Assortment Planning Process: Color Qualitative Evaluation (A423, A4231- A4232) (Continued)

43 A414 output A423 output Color information search output Consider the sales potential of color with style sales potential A424 Sales potential of colors A4241 A4242 A4243 A A414 output A423 output Have more color variation for high salespotential style A4241 Color variation for high sales potential style Have one or two colors for uncertain salespotential styles A4242 Color information search output Color variation for uncertain sales-potential style Evaluate sales potential for the all colors A4243 Sales potential of colors A428 Figure Practical Assortment Planning Process: Color Qualitative Evaluation (A424, A4241-A4243) (Continued)

44 Subjective color taste Subjective color taste Own experience Own experience Evaluate colors based on own experience A4271 Evaluation results Manager opinion Sales people opinion Customer opinion Gather opinion for color evaluation Color evaluation results Subjective color taste A Sales people opinion Manager opinion Evaluate color by manager & sales people A4272 Evaluation results A4271 Subjective color taste A4272 A4273 A427-3 A428 Customer opinion Get feedback from customers A4273 Evaluation results 1. Note A4273 Small companies buy and display small amount of certain colors in the beginning of the season and get feedback from customers and sales people. A428 NODE: A4273 TITLE: Color Qualitative Evaluation NO.: 1 Figure Practical Assortment Planning Process: Color Qualitative Evaluation (A427, A4271-A4273) (Continued)

45 Constraints A Inputs of Color Qualitative Evaluation - Size information search outputs - Vendor's opinion, size spec, pre-pack - The fit related to style - The fabric attribute 2. Constraints of Color Qualitative Evaluation - Unsettled specs of new manufacturers - Difficulty distinguishing size variation for each style - Buyer's low involvement due to time constraint (In big companies, inventory-control department decides the size range & amount based on sales history. Not much buyer's job in size evaluation & selection.) - Not detailed sales record for size evaluation - No geographical information on size distribution - Overstock or shortage due to pre-pack regulation NODE: A43 TITLE: Size Qualitative Evaluation NO.: 1 & A43-1 Inputs Evaluate qualitative aspects of size Size qualitative evaluation results A43 A431 A433 A435 A437 A432 A434 A436 A438 A53 A63 Figure Practical Assortment Planning Model: Size Qualitative Evaluation (A43) Diagram

46 No geographical information regarding size Customer ethnicity, age, & geographical area Define size range of target customer A431 Not detaile sales record Past sales record Distinguish size range sold well in the past A432 Information search output Define needs for new size range A433 Buyer's low involvement Organize evaluation results Size qualitative evaluation results 145 Own knowledge Fabric attribute Vendor opinion Size spec Size offering rule Define size range by fabric attribute A434 Consider vendor size offer A435 Difficulty of distinbguishing size range for each style A438 A53 A63 1. Note A437 - Small companies buy small amount of products in teh beginning of a season & then observe how customers or sales people feel with the fit. - Big companies develop samples in stead. NODE: A437 TITLE: Size Qualitative Evalution NO.: 1 Styles Samples Consider style for size range A436 Watch fit of samples or actual products A437 A437 Figure Practical Assortment Planning Model: Size Qualitative Evalution Process (A431-A438) (Continued)

47 Unsettled size spec of new manufacturere Overstock or shortage because of pre-pack Vendor opinion Vendor size-spec Consider vendor size offer Size offer direction Unsettled size spec of new manufacturere Vendor size offering rule A4351 A4352 A4353 A435 A Vendor size spec Consider fit of size spec A4351 Size spec difference Overstock or shortage because of pre-pack Decide how to translate vendor size spec if size spec is different A4352 Vendor size offering rule Own needs of size range Negotiate vendor size offering rules (e.g., pre-pack) A4353 Size offer direction A438 Figure Practical Assortment Planning Process: Size Qualitative Evaluation (A435, A4351-A4353) (Continued)

48 1. Constraint in Quantitative Evaluation - Not advanced statistic method - Difficulty of utilization of POS - Fast fashion change - Difficulty of decision when stop buying a product - Difficulty in relationship with vendors - When no sales history base NODE: A5 TITLE: Quantitative Evaluation NO.: 1 A5 Constraints Information search output A4 output Growth rate of business 147 Open-to-buy dollars Sales history/ Test-run results Promotion plan Product cost/ Gross margin Evaluate the quantitative value of products Quantitative evaluation results Numbers of stores Store characteristics Customer opinion Financial agreement with vendors A5 A51 A52 A53 A6 A7 Figure Practical Assortment Planning Model: Quantitative Evaluation (A5) (Continued)

49 A Inputs of Style Quantitative Evaluation - Style information search output - Style qualitative evaluation output - Growth rate of business - Open-to-buy dollars - Sales history - Remained stock level - Test-run results - Seasonality - Promotion plan - Price/ Cost/ Gross margin/ Mark-up/ Mark-down - numbers of stores - Store characteristic (e.g., size, location, & fashion-ability) - Financial agreement with vendors 148 A51-1 Inputs Constraints Evaluate quantitative value of style Style quantitative evaluation results 2. Constraints of Style Quantitative Evaluation - Not much use of advanced statistic methods - Needs for advanced technology (e.g., updated computer system) - Unpredictable weather change - When no history base - Difficulty of utilization of POS due to long time advance plan - Fast fashion change (Big companies usually give up short time fashion items due to long time advance plan.) - Minimum quantity obligation from vendors (Small companies have more trouble with this regulation & avoid buying from the vendors having this regulation.) A51 NODE: A51 TITLE: Style Quantitative Evaluation NO.: 1 & 2 A52 & A53 A511 A513 A515 A517 A512 A514 A516 A518 A61 A7 Figure Practical Assortment Planning Model: Style Quantitative Evaluation (A51) Diagram

50 Open-to-buy dollar Decide open-to buy dollars for my department A511 Categorize store characteristics A512 Analyze percentage of basic styles A513 Analyze previously tested styles A514 Organize evaluation results A518 Style quantitative evaluation results A514 output Define percentage for basic, tested, & new styles A515 A518 A52 & A Predict percentage of each style A516 A61 A517 A7 1. Note A518 - Buyers usually don't use a whole evaluation sheet, but potential profit & sales history reports are given by inventory department people, manager, or vendors. 2. Note A Examples of financial agreement mentioned in this research are minimum quantity, return-back guarantee, mark-down coverage, or lowest cost guarantee. A517 & NODE: TITLE: Style quantitative evaluation NO.: 1 & 2 A518 Financial agreement with vendor Consider financial agreement A517 Figure Practical Assortment Planning Model: Style Quantitative Evaluation Process (A511-A518) (Continued)

51 Style information search output Decide open-to buy dollars Open-to buy dollars for our department Growth rate of business A511 A512 A5111 A5112 A Information search output Consider the change in consumer market dem& based on information search output A5111 Market situation Growth rate of business Decide open-to-buy dollars A5112 Open-to-buy dollars for our department A512 A518 Figure Practical Assortment Planning Process: Style Quantitative Evaluation (A511, A5111- A5112) (Continued)

52 Numbers of stores Store fashionability & taste Categorize store type with style characteristics A512 Overall percentage of each style category A513 A5121 A5122 A5123 A Numbers of stores Store fashionability & taste Categorize store types by fashionability & taste A5121 Store categories Calculate the percentage of each store type Percentages of store types Define style characteristics based on store type Overall percentage of each style category A5122 A5123 A513 A518 Figure Practical Assortment Planning Process: Style Quantitative Evaluation (A512, A5121-A5123) (Continued)

53 A5131 Not advanced statistic method Needs for updated technology Unpredictable weather change Remained stock level Check remained stock level of basic styles Sales history A5131 Not advanced statistic method Analyze change of sales pattern past several years A5132 A513-2 Needs for updated technology A512 output Remained stock level Sales history Growth rate of business Remained basic styles Analyze the percentage of basic styles A5131 A5132 A5133 A5134 A513 Percentage of basic styles A Growth rate of business A512 output Predict sales potential of basic styles for the next season Growth rate of basic style A5133 Sales potential Unpredictable weather change A Note A513-1 The remained stock level is important to decide stock level. The remained stock level can be considered with sales potential of the style for the next season. In some case, few companies (especially, big companies) said that they keep basic styles year around (e.g., denim shirt) but change colors by garment dye every season. 2. Note A513-2 Several interviewees said that they use Gross Margin & numbers of reorder as sales pattern index. Define percentage of basic styles in entire styles A5134 Percentage of basic styles A514 A518 NODE: A513 TITLE: Style Quantitative Evaluation NO.: 1 & 2 Figure Practical Assortment Planning Process: Style Quantitative Evaluation (A513, A5131-A5134) (Continued)

54 Limit of POS utilization Needs for updated technology Unpredictable weather change Test-run results Limit of POS utilization Calculate percentage of sold units by order units A5141 A513 output Test-run results Growth rate of business Decide percentage of previously tested styles A5141 A5143 A5142 A5144 A514 Percentage of previously tested styles A515 Test-run results Calculate sales profit of each tested style A A5142 Needs for updated technology Percentage of sold units Growth rate of business Predict sales potential of tested styles for the next season Sales profit of tested style A5143 Sales potential Unpredictable weather change A513 output Define percentage of tested styles in entire styles A5144 Percentage of previously tested styles A515 A518 Figure Practical Assortment Planning Process: Style Quantitative Evaluation (A514, A5141-A5144) (Continued)

55 Limited detail data Unpredictable weather change Sales history A515 output Limited detail data Unpredictable weather change Weather forecast Promotion plan A515 output Predict percentage of each style Predicted percentage of each style Sales history Weather forecast Promotion plan 154 Consider seasonality A5161 A51611 A51612 A51613 Product cost A515 output Calculate total cost with considering cost difference by volume A5162 A511 output A41 output A516 A5161 A5163 A5162 A5164 A517 A518 Total cost A5161 output Calculate sales profit of each style A5163 Sales profit A41output A511 output Balance sales profit with qualitative evaluation results A5164 Percentage of each style A517 Figure Practical Assortment Planning Process: Style Quantitative Evaluation (A516, A5161-A5164) (Continued) A518

56 Limited detail data Unpredictable weather change A515 output Sales history Weather forecast Promotion plan Consider seasonaility A5161 Volume change due to seasonal uniqueness Limited detail data A51611 A51612 A51613 A5162 A515 output 155 Sales history Track sales & stock by time frame A51611 Ordinary sales pattern by time frame Weather forecast Unpredictable weather change Consider weather change against past sales A51612 Weather difference Consider new promotion plan (e.g., advertising, markdown) A51613 Volume change due to seasonal uniqueness A5162 Figure Practical Assortment Planning Process: Style Quantitative Evaluation (A5161, A51611-A51613) (Continued)

57 Constraints A Inputs of Color Quantitative Evaluation - Color information search output - Color qualitative evaluation output - Style quantitative evaluation output - Open-to-buy dollars - Sales history - Remained stock level - Test-run results - Seasonality - Numbers of styles - Fashion-ability of style 2. Constraints of Color Quantitative Evaluation - Unpredictable weather change - Something with no history base - Fast fashion change (Big companies usually give up short time fashion items due to long time advance plan.) - Minimum quantity obligation or pre-packed colors from vendors (Small companies have more trouble with this regulation & avoid buying from the vendors having this regulation.) 156 A52-1 Inputs Evaluate quantitative value of color Color quantitative evaluation results NODE: A52 TITLE: Color Quantitative Evaluation NO.: 1 & 2 A52 A53 A521 A523 A525 A527 A522 A524 A526 A62 A7 Figure Practical Assortment Planning Model: Color Quantitative Evaluation (A52) Diagram

58 A51 output Decide open-to buy dollars for each style A521 Analyze percentage of basic colors A522 Analyze percentage of previously tested colors A523 Define percentage of basic, tested, & new colors A524 Organize evaluation results Color quantitative evaluation results 157 A524 output Predict percentage of each color in a stylea525 A527 A53 A62 Minimum quantity or pre-packed colors A7 Financial agreement with vendor Consider financial agreement A526 Figure Practical Assortment Planning Model: Color Quantitative Evaluation Process (A521-A527) (Continued)

59 A521 output open-to-buy dollars A51 output Sales history Remained stock level A32 output Unpredictable weather change Analyze percentage of basic colors A522 Percentage of basic color A A5221 A5222 A5223 Sales history Remained stock level A32 output Analyze sales pattern of basic colors past years A5221 A527 Fashion-ability of style A51 output Predict sales potential of tested colors with evaluated styles A5222 A521 output: open-to-buy dollars Define percentage of basic colors A5223 Percentage of basic color A523 A527 Figure Practical Assortment Planning Process: Color Quantitative Evaluation (A522, A5221-A5223) (Continued)

60 A521 output open-to-buy dollars A51 output A522 output A32 output Test-run results Unpredictable weather change Analyze percentage of previously tested colors A523 Percentage of tested color A5231 A5232 A5233 A Test-run results A32 output Track percentage of sold units by order units A5231 A527 Fashion-ability of style A51 output Predict sales potential of basic colors with evaluated styles A5232 A522 output A521 output: open-to-buy dollars Define sales potential of tested colors A5233 Percentage of tested color A524 A527 Figure Practical Assortment Planning Process: Color Quantitative Evaluation (A523, A5231-A5233) (Continued)

61 Limited detail data Unpredictable weather change Sales history Weather forecast Limited detail data Promotion plan A524 output Predict percentage of each color Predicted percentage of each color A521 output A524 output Sales history Promotion plan Track sales & stock by time frame A525 Unpredictable weather change A42 output A5252 A5253 A5251 A525 A526 A Weather forecast Consider weather change A525 Total cost A42 output A521 output Balance color percentage with qualitative evaluation results A525 Percentage of each color A526 A527 Figure Practical Assortment Planning Process: Color Quantitative Evaluation (A525, A5251-A5253) (Continued)

62 Constraints A Inputs of Size Quantitative Evaluation - Size information search output - Size qualitative evaluation output - Style quantitative evaluation output - Color quantitative evaluation output - Open-to-buy dollars - Sales history - Remained stock level - Test-run results - numbers of styles & colors - Fit of style 2. Constraints of Size Quantitative Evaluation - Something with no history base - Minimum quantity obligation or pre-packed colors from vendors (Small companies have more trouble with this regulation & avoid buying from the vendors having this regulation.) - Size spec difference among vendors (e.g., Europe size spec) NODE: A53 TITLE: Size Quantitative Evaluation NO.: 1 & A53-1 Inputs Evaluate quantitative value of size Size quantitative evaluation results A53 A537 A531 A533 A535 A532 A534 A536 A63 A7 Figure Practical Assortment Planning Model: Size Quantitative Evaluation (A53) Diagram

63 A33 output A43 output A51 & A52 output Decide open-to buy dollars for sizes A531 Analyze percentage of past sizes A532 Analyze percentage of previously tested or new sizes A A51 output A533 output A43 output Vendor's size spec Size spec difference Consider style fit for size evaluation A534 A534 Predict percentage of each size for evaluated styles A535 Organize evaluation results A537 A63 Size quantitative evaluation results Minimum quantity or pre-packed sizes A7 Financial agreement with vendor Consider financial agreement with vendors A536 Figure Practical Assortment Planning Model: Size Quantitative Evaluation Process (A531-A537) (Continued)

64 Sales history Remained stock level Analyze percentage of past sizes A532 Percentage of usual sizes A5321 A5322 A533 Sales history Analyze size sales pattern past years A Remained stock level A5321 Growth rate of business Define percentage of usual sizes A5322 Percentage of usual sizes A533 A537 Figure Practical Assortment Planning Process: Size Quantitative Evaluation (A532, A5321- A5322) (Continued)

65 No history base A531 output open-to-buy dollars A532 output A33 output Test-run results Analyze percentage of previously tested or new sizes A533 Percentage of tested or new sizes 164 A5331 A5332 A5333 A534 A537 Test-run results A32 output Track percentage of sold units by order units when previously tested A533 No history base A33 output Predict sales potential of new sizes when not previously tested A533 A532 output A531 output open-to-buy dollars Define sales potential of tested or new sizes A533 Percentage of tested or new sizes A534 A537 Figure Practical Assortment Planning Process: Size Quantitative Evaluation (A533, A5331-A5333) (Continued)

66 1. Constraint in Product Selection - Tendency being subjective - Difficulty for focusing on merch&ising concept NODE: A6 TITLE: Product Selection NO.: 1 A6 Constraints A4 output 165 A5 output Select products Selected products Merchandising concept Depth & width assortment A6 A61 A62 A63 A7 Figure Practical Assortment Planning Model: Product Selection (A6) (Continued)

67 Constraints A Inputs of Style selection - Style qualitative evaluation output - Style quantitative evaluation output - Merch&ising concept - Depth & width of assortment - Vendor opinion 2. Constraints of Style Selection - Tendency of being subjective - When difficut to find styles in merch&ising concept (rare problem) NODE: A61 TITLE: Style Selection NO.: 1 & 2 A61-1 Inputs Select styles Style selection 166 A61 A611 A612 A613 A614 A615 A616 A62 A7 Figure Practical Assortment Planning Model: Style Selection (A61) Diagram

68 When difficult to find styles on concept Merchandising concept A41 output A51 output Recheck merchandising concept for selectiona611 Depth & width plan Decide numbers of styles selecting A612 Determine style selection Style selection 167 Rank priority styles A613 Tendency of being subjective A616 Make sure of getting the best styles A614 A62 A7 Merchandising concept: price Make sure price range acceptable A615 Figure Practical Assortment Planning Model: Style Selection Process (A611-A616) (Continued)

69 A41 output Rank priority styles Priority styles A51 output A613 A6131 A6132 A6133 A614 & A615 A41 output A51 output Rank the best basic & tested styles A6131 A A41 output A51 output A62 output Rank the best new styles A6132 Vendor opinion Ask availability of the styles to vendors A6133 Priority styles A614 & A615 A616 Figure Practical Assortment Planning Process: Style Selection (A613, A6131-A6133) (Continued)