Case: Sport Obermeyer

Case: Sport Obermeyer Using the sample data given in Table2-20, make a recommendation for how many units of each style Wally should male during the initial phase of production. Assume that all of the 10 styles in the sample problem are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. Ignore price differences among styles in your initial analysis. Style Mean Std Dev produce (avg-2SD) Hong Kong Gail 1017 388 639 629 Isis 1042 646 396 600 Entice 1358 496 862 862 Assault 2525 680 1845 1845 Teri 1100 762 338 600 Electra 2150 807 1343 1343 Stephanie 1113 1048 65 600 Seduced 4017 1113 2904 2904 Anita 3296 2094 1202 1202 Daphne 2383 1394 990 990 Total: 10572 11573 Can you come up with a measure of risk associated with your ordering policy? This measure should be quantifiable. Style Average standard deviation coefficient of variation (SD/ Av) Gail 1017 194 19.09 Isis 1042 323 31.02 Entice 1358 248 18.24 Assault 2525 340 13.47 Teri 1100 381 34.02 Electra 2150 404 18.78 Stephanie 1113 524 47.09 Seduced 4017 556 13.65 Anita 3296 1047 31.77 Daphne 2383 697 29.24 Repeat your methodology and assume now that all 10 styles are made in China. What is the difference ( if any) between the two initial production commitments? Style Mean Std Dev produce Hong Kong China Gail 1017 388 639 629 1200 Isis 1042 646 396 600 1200 Entice 1358 496 862 862 1200 Assault 2525 680 1845 1845 1845 Teri 1100 762 338 600 1200 Electra 2150 807 1343 1343 1343 Stephanie 1113 1048 65 600 1200 Seduced 4017 1113 2904 2904 2904 Anita 3296 2094 1202 1202 1202 Daphne 2383 1394 990 990 1200 Total: 10572 11573 14493 The difference between production in Hong Kong and China are inventory, total cost, operation time and quality. What operational changes would you recommend to Wally to