Watch “ Deckers: Forecasting ” and read the Video Case “Forecasting and Supply Chain Management at Deckers Outdoor Corporation” at the end of Chapter 14 in Operations Management: Processes and Supply Chains.
2. Navigate to the threaded discussion below and provide narrative discussion for the following issues: a. How much does the forecasting process at Deckers correspond with the “typical forecasting process” described at the end of this chapter?
b. What factors make forecasting at Deckers particularly challenging? How can forecasts be made for seasonal, fashionable products for which there is no history file? What are the costs of over-forecasting demand for such items? Under-forecasting?
c. How does the concept of postponement get implemented at Deckers by having on-line sales and positioning inventory at the DCs for every model, color, and size?
d. Deckers plans to expand internationally, thereby increasing the volume of shoes it must manage in the supply chain and the pattern of material flows. What implications does this strategy have on forecasting, order quantities, logistics, and relationships with its suppliers and customers?