Nike is an athletic apparel and footwear company that first launched its footwear in 1972. “At an investor meeting at its global headquarters in June 2011 , NIKE, Inc. announced an increase in its fiscal 2015 revenue target to a new range of $28 billion to $30 billion, up from its previously announced target of $27 billion. in May 2010. The company also increased its fiscal 2015 revenue target for the NIKE brand to $24 billion to $25 billion, up from its previous target of $23 billion. (Nike, 2014)In 2000, with the aim of streamlining its demand and production process, Nike implemented the I2 system. The I2 system was a demand forecasting system intended for use by the production planning department to predict customer demand for each product type. An error in the system-generated model led to the production of incorrect quantities of products. This leads to an overabundance of less desirable products and a shortage of desired products. The miscalculation “cost Nike more than $100 million that quarter.” Additionally, their stock prices fell 20% the day after the error was publicly announced. (Magal & Word, 2009) The main personnel directly involved in this costly situation are the production planning department, manufacturing department, purchasing department, sales department and company management. The implementation of I2 software was decided by company management and was to be used by the production planning department to create demand forecasting models. The model data was then to be used by manufacturing and procurement departments to purchase the necessary materials and create the required products predicted by the model. The sales department additionally had numbers that were entered into the system, but these...... middle of paper ...... the software should have allowed visibility between all departments, which would allow to detect any error in a single department by the others. The error in the request template itself should be investigated to see if there is a problem with the program itself that needs to be fixed. Finally, a quality control system should be implemented to ensure that all data is verified and any further errors are corrected before it is too late in the future. Works Cited Leshinsky, G. (2008, February 18). Nestlé and Nike: how they almost failed. Retrieved from: http://recruitech.wordpress.com/2008/02/18/nestle-and-nike-how-they-almost-failed/Magal, S. & Word, J. (2009). Essentials of business processes and information systems. Hoboken, NJ: John Wiley & Sons, Inc. (2014). Nike Inc., History and Heritage. Retrieved from: http://nikeinc.com/pages/history-heritage