Example: Apparel Industry

In the apparel industry, you develop an initial forecast for the following requirements before the development of the collection is complete:

• Grey fabrics booking for blanket orders.

• Manufacturing human resources booking.

• Collection and style item level.

You create the forecast for style item and color, and confirm (purchase) one-third of the fabrics at the color level. Note that the apparel industry has an industry standard, according to supplier requirements, that 30 percent of the supplies are purchased at the time the forecast is created.

You review the forecast after three to five weeks of selling and complete the following tasks:

• Extrapolate the collection to the lowest level child items.

• Isolate atypical orders.

• Calculate additional forecast for replenishment orders.

• Complete purchase of the fabrics.