Under-Armour Integrated Operations

Planning for Integrated Operations

Krystal Hoham

San Diego Christian College

BU 323

December 10, 2014

Abstract

Under Armour, Inc. is a sporting line from America who sells clothing and accessories. Also is a supplier of not just sportswear but also some casual apparel. The company first started selling footwear in 2006; it also has global headquarters, which are located in Baltimore, Maryland. Their planning when it comes to sales and operations is impeccable when it comes to this industry.

Introduction

Under Armour is a very innovative company when it comes to the apparel industry. Just a little under 20 years ago this was all an idea, that originated in Kevin Plank’s grandmothers basement. Selling authentic t-shirts

They are never satisfied because they know very well that customers always want more and more and newer and newer. In this lifetime most of all consumers always wants the newer and better right away and before anyone else. They’re so hungry for it, it’s hard for companies to keep up, however Under Armour does a great job of it. From their sales and operations planning all the way to their customer service, it is always improving from what people that was pretty good.

The process for integrating marketing and operations plan to develop a tactical plan is the sales and operations planning. Within this area they must also try their best to be able to balance supply and demand. Around this there are many other planning that comes with it. That being financial budgeting, aggregate sales plan, aggregate production plan, resource plan, and unconstrained marketing plan. Within the resource plan the inputs are; inventory replenishment, capacity constraints, mix constraints, material, transportation and storage constraints, and suppliers. Now, within the unconstrained marketing plan the inputs are; orders on hand, current customers, new customers, competition, margin analysis, new products, promotion plans, and

This formula involves; p=level production rate, Di= demand in period i, EI= desired ending inventory level, BI= beginning inventory, and N= number of planning periods. This formula ends up looking like; P=(ΣDi +EI−BI) /N. Now the strategic planning of aggregate is to change the production so that it is able to match demand and the inventory is then able to remain somewhat steady and little. The three main aspects of aggregate planning that we focus on are demand, production, and inventory now you get the comination of level and chase strategies. There is also aggregate planning for service that means you adjust the prices in response to demand levels. However services cannot create inventory to buffer demand. This is where you are then able to modify the prices to try and be able to encourage customers to purchase for service at supplier-desired times. The main goal of this is so that Under Armour is able to maximize revenue and