Sports Obermeyer
CASE REPORT 1
Sports Obermeyer
Supply Chain Management
MBAD 6208
Dr. Xiulie HE
Erhan TURKURER
Joanne ZHANG
Varun JOSHI
Yue CUI
FALL 2014
FALL 2014 [SPORTS OBERMEYER]
Table of Contents
1. What is the lead-time for production of skiwear? What are the factors that contribute to lead times being so long? What are the operational and competitive results of these long lead times?
2. Using the sample data given in Exhibit 10, make a recommendation for how many units of each style Wally Obermeyer should order during the initial phase of production.
Assume that all ten styles in the sample problem are made in Hong Kong, and that
Obermeyer's initial production commitment must be at least 10,000 units. (Ignore price differences among styles in your initial analysis.)
3. What operational changes would you recommend to Wally to improve performance?
4. How should Obermeyer management think (both short-term and long-term) about sourcing in Hong Kong versus China?
1
FALL 2014 [SPORTS OBERMEYER]
1. What is the lead time for production of skiwear? What are the factors that contribute to lead times being so long? What are the operational and competitive results of this long lead time?
1.1
Lead time
Lead time in Sport Obermeyer was pretty long. We will look into four different processes.
Design: The design process started as early as February 1992 for season 1993-1994. It normally would take three months to finalize the design concepts. The company started prototype production in
August, six months after the design process started. Around
September, designs were finalized. Sample production would start in
October. Design process took about 9 months.
Production: Prototype production was in August 1992. In October, the company started sample production. About four months after the sample production, company would start full scale production around
January 1993. The full scale production would end in end
Sports Obermeyer
Supply Chain Management
MBAD 6208
Dr. Xiulie HE
Erhan TURKURER
Joanne ZHANG
Varun JOSHI
Yue CUI
FALL 2014
FALL 2014 [SPORTS OBERMEYER]
Table of Contents
1. What is the lead-time for production of skiwear? What are the factors that contribute to lead times being so long? What are the operational and competitive results of these long lead times?
2. Using the sample data given in Exhibit 10, make a recommendation for how many units of each style Wally Obermeyer should order during the initial phase of production.
Assume that all ten styles in the sample problem are made in Hong Kong, and that
Obermeyer's initial production commitment must be at least 10,000 units. (Ignore price differences among styles in your initial analysis.)
3. What operational changes would you recommend to Wally to improve performance?
4. How should Obermeyer management think (both short-term and long-term) about sourcing in Hong Kong versus China?
1
FALL 2014 [SPORTS OBERMEYER]
1. What is the lead time for production of skiwear? What are the factors that contribute to lead times being so long? What are the operational and competitive results of this long lead time?
1.1
Lead time
Lead time in Sport Obermeyer was pretty long. We will look into four different processes.
Design: The design process started as early as February 1992 for season 1993-1994. It normally would take three months to finalize the design concepts. The company started prototype production in
August, six months after the design process started. Around
September, designs were finalized. Sample production would start in
October. Design process took about 9 months.
Production: Prototype production was in August 1992. In October, the company started sample production. About four months after the sample production, company would start full scale production around
January 1993. The full scale production would end in end