LL Bean Inc Case Study Example | Topics and Well Written Essays - 500 words

LL Bean Inc - Case Study ExampleHowever, by the time of his death, the company had grown immensely with annual sales averaging about $4.75 million and the number of employees standing at 200 (Schleifer, 1993, p. 2). The grandson expanded and modernized the business while sticking to his grandfathers rule, Sell good swap at a reasonable profit, treat your customers like humans beings, and theyll always come back for more and by 1991, the company was a leading assort manufacturer and retailer in outdoor sporting field (Schleifer, 1993, p. 2). Currently, the company has diversified into selling outdoor recreation equipment and clothing.L.L Bean opted not to expand its retail operations and instead stuck with the only retail store they had opened at Freeport. Leon Gorman explained this decision saying the catalog business and retail business were different and both required different types of management styles (Schleifer, 1993, p. 2). However, a Consumer Report survey ranked L.L.Bean as the most customer satisfying mail-order company in the U.S. among its major competitors such(prenominal) as Eddie Bauer, Talbots, Lands End and Orvis. In addition, the companys product line was classified as hierarchical and whose highest level of aggregation is active by Merchandise Groups such as mens and womens apparel, footwear and accessories, camping equipment among many others (Schleifer, 1993, p. 2). Below each Group is Demand centers such as sweaters, pants, skirts, jackets among many others. The hierarchy continued with Item sequences followed by individual items distinguished by color, which formed the basis of forecasting and purchases to replenish stock (Schleifer, 1993, p. 3).The trouble of inventory management is a bone of contention, in this case. The problem of making forecasts for each individual item stocked by the company has been the main quarrel facing the company because its hard to match demand and supply for items