A/ ASSIGNMENT RECAP

●      Focus on inventory forecasting and management in the fashion industry.

●      Each group discusses forecasting methods used by a specific fashion brand.

●      Investigate real-life conditions of a brand operating in Ho Chi Minh City or elsewhere.

●      Include qualitative and quantitative methods in the discussion.

●      Relate to sourcing perspectives and compare forecasting methods.

●      Research theory of inventory management for the selected brand.

●      Analyze past inventory management problems and their causes.

●      Identify inventory classification systems (e.g., ABC analysis).

●      Discuss terms like EOQ, MOQ, inventory level, reorder point, ordering systems, and processes.

●      Consider the use of information technology in forecasting and inventory management.

●      Understand theoretical aspects to prepare a high-quality report.

Suggested structure:

I. Executive summary (250 words)

II. Introduction (330 words)

III. Forecasting methods

1. Definition (140 words)

2. Brand’s forecasting methods (380 words)

IV. Inventory management

1. Inventory management data (200 words)

2. Economic order quantity (EOQ) (90 words)

3. ABC analysis (190 words)

V. Minimum order quantity (MOQ)

1.Definition (400 words)

2. MOQ of the brand (175 words)

VI. Economic order quantity (EOQ)

1.Definition (EOQ) (290 words)

2. EOQ of the brand (110 words)

VII. Reorder point (ROP)

1. Definition (200 words)

2. Reorder point of the brand (200 words)

VIII. Inventory levels

1. Definition (120 words)

2. Inventory level of the brand (140 words)

3. How to maintain optimal inventory levels (300 words)

IX. Technology in inventory management

1. Radio-frequency identification (RFID) (380 words)

2. How does brand apply RFID in their inventory management (290 words)

X. Order management system

1. Definition (100 words)

2. Brand and the use of EPM (270 words)

XI. Process of receiving goods

1. Definition (110 words)

2. Brand’s process of receiving goods (350 words)

XII. Inspection (155 words)

XIII. Issuance of goods and storage (260 words)

XIV. Sustainability in inventory management (300 words)

XV. Conclusion (270 words)

B/ KEY TERM DEFINITION

Inventory management: the practice of effectively overseeing and controlling a company's stock of goods.

Forecasting method: techniques used to predict future outcomes based on historical data and relevant factors.

Economic order quantity (EOQ): a formula-based inventory management technique that determines the optimal quantity of goods to order, balancing the costs of ordering and holding inventory.

Minimum order quantity (MOQ): the lowest quantity of a product that a supplier or manufacturer is willing to sell or produce in a single order.

ABC analysis: a technique used in inventory management to categorize items based on their importance and value, typically into three categories: A, B, and C.

Reorder point (ROP): the inventory level at which a new order should be placed to replenish stock before it runs out, taking into account lead time and demand variability.

Inventory level: the quantity of goods or products that a company currently has in stock at a particular point in time.

Inspection: the process of carefully examining, assessing, and evaluating something to ensure it meets specific standards, requirements, or expectations.

Issuance: the act of officially distributing or providing something, such as documents, items, or resources, to individuals or entities.

C/ DETAILED GUIDELINE

I. Executive summary (250 words)

Provide a concise overview of the main points and findings of a document or report. It should be clear, focused, and tailored to the intended audience, highlighting key insights and recommendations.

Example:

The research evaluates Lululemon's forecasting and inventory management systems, focusing on efficiency, sustainability, and information technology use. Interviews with the manufacturer's deputy director and HR head will provide an industry report.

II. Introduction (330 words)

●      Introduction to inventory management

Example:

Inventory is crucial for a successful organization, including raw materials, WIP, operational supplies, and finished goods. It supports customer service, transportation, and manufacturing activities. Inventory management addresses stock control demands to resolve conflicts in the best interest of the organization, addressing opposing demands in stock control.

Muller M (2019) Essentials of Inventory Management, 3rd edn, HarperCollins Leadership, the United States.

Wild T (2017) Best Practice in Inventory Management, 3rd edn, Taylor & Francis Group, New York.