Vermont Teddy Bear Company
progression of the vermont teddy bears:
- After 2 years of selling mainly to friends the sortino becan to sell the bears from a pushcart in a pedestrian mall in burlington.
For discussion:
1. How has the vermont teddy bearbenefited from demand forecasting? what are the cost?
PRogression of the vermont teddy bears:
the start of the Vermont Teddy bear company:
- it took four days just for sortino to sell 1 bear.
- and it took a whole year to sell 200 bears.
- Demand forecasting determines the number of employees that the organization will need in the future as well as the knowledge, skills, and abilities these empployees must possess.
- despite it taking about so long to start the vermont teddy bear company is the leading manufacturer of hand-crafted, U-s- made teddy bears.
- the vermont teddy bear company uses demand forcasting to their benefit pruduction-planning.
- The first Vermont teddy bear was made in 1981 by John sortino's wife
- at first these bears were sold mainly to friends.
- raw materials
- schedule prduction
- outsouring the work.
Sucess:
Techniques:
each year more than 150,000 people visit the company interested in how these bears are created, make their own bears, or buy premade ones.
Create certain designs such as:
- Snowboarding bear
- elvis presley bear in honor of his 100th birthday
- The company base the styles of the bears off seasons, holidays, etc.
The company sells about 450,00 bears annually with its bear-gift delivery.
1. How has the vermont teddy bear comapny benefited from demeand forecasting? what are the costs?
cost is based on:
- advertisement
- building these teddy bears
- raw materials
- how many employees they hire for the job
3. do you think the vermont teddy bear company needs to prepare contingency plans? explain.
contingency plans: development of two or more plans each based on different conditions.
yes i do think they need to prepar these these of plans because these plans can become complicated and for effective results they need to be thoroughly planned.
2. after determning forecast objectives they use a multistep forecasting process.
2. what levels of strategic planning are involved in forecasting product demand for vemont teddy bears?
- forcasting revenues by analyzing various markets, numbers, and sales methods
- provide a quarterly forecast for each product of the dynamic product mix. which changes weekly.
- qualitative factor is looked at for catalogs
- last, they monitor and compare actual performance to forecasted performance.
1. first step in the production-planning processes is seeing:
- how many raw materials to order
- how to schedule production
- whether & how much to outsource the work
4. what barriers to effective planning might vermont teddy bears experience? explain how each barrier is overcome or lessened by the company.
- competition
- cost of materials and employees
- trying to find a bear for seasons and HOLIDAYS
- popular demands and trends