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
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There were two main driving issues behind our analysis of this Sport Obermeyer case: the measurement and understanding of demand from uncertain and disparate forecasts‚ and the allocation of production between factories in Hong Kong and Mainland China (Lo Village‚ Guangdong). The main challenges facing the company were long lead times‚ little to no feedback from the market before the first production decision (the first real demand signal is at the Las Vegas trade show in March) and inaccurate forecasts
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1- What makes supply chain management at Sport Obermeyer so challenging? The biggest challenge Sport Obermeyer is facing is uncertainty. The demand for each of the styles is completely un-deterministic and is very hard to predict. At the same time‚ Obermeyer production cycle is very long which is making it nearly impossible to adapt to the market. On one hand‚ if the produced items do not sell‚ Obermeyer incurs the loss of manufacturing cost. On the other hand‚ if we do not produce enough of the
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Sport Obermeyer – Case Report Module One‚ Session Six Supply Chain Inventory Management Darcy Shannon October 27‚ 2010 Sport Obermeyer – Case Report Executive Summary In order to minimize the degree of stock outs‚ and markdowns‚ I have decided for the initial Hong Kong order to produce those products that have the smallest standard deviation when comparing the Buying Committee Forecasts. An attempt will also be made to purchase the lowest cost items within this group‚ as initial order size of
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Sport Obermeyer – Case Review In this case study we discuss the problems faced by Sport Obermeyer‚ a fashion skiwear manufacturer. Every year the company had to produce a new line of clothing according to the latest trends and fashions. The success of the company depended on how well Sports Obermeyer was able to predict market response to different styles and colors. Intense competition had made forecasting really difficult. The two scenarios that resulted were products in style sold out and the
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Obermeyer Sports‚ Ltd. Introduction Sports Obermeyer‚ Ltd‚ a fashion skiwear manufacturing company‚ faces an array of issues before starting a new production cycle. The right timing for the production decision‚ prediction of production volume‚ associated risks‚ production process key steps that add value‚ and productivity issues are all concerns that must be addressed. The first step of Obermeyer’s decision making is to decide sample production volumes. The sample production (10‚000 units
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data that would provide clear indication how end-consumers would respond to the company’s current line. A good solution would enable Obermeyer to decide on where and when to source each product (China vs. Hong Kong vs. an alternative factory). The Fashion Industry is extremely competitive‚ as well as trendy. Last year Columbia Sportswear‚ a competitor of Sport Obermeyer‚ managed to capture 23% of the Adult Ski-Jacket market. This‚ along with the ever increasing varieties of products and no clear indication
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2.) The cycle time between initial design of the ski parkas and the final sale to retailers begins in Febuary 1992 and ends in Septembe1993r‚ a total cycle time of approximately seventeen months. This lengthy cycle time is necessary for Sport Obermeyer to develop several attractive designs for the annual Las Vegas trade show where 80% of sales are made and eventually these designs are finalized six months later. This cycle also incorporates several major processes starting with the selection of
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Supply Chain Management Case Study Report: Sport Obermeyer Q #1. Where would you place production? Although the article argues that they intended to place about half of its all production to China‚ I would personally shift more than half of its production toward Hong Kong if you are talking about the current market. I’m not quite sure if it’s about population of skiers/snowborders‚ but apprently a number of ski resorts went out of business in the past decade and we are faced with the
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Peter M. Ovwiovwio Course Title: MSCM 553: Logistics & Supply Chain Systems Paper: Module Two Assignment (Two) Paper Title: Sport Obermeyer Case Analysis BACKGROUND: This paper presents a brief and concise case analysis of Sport Obermeyer. Sport Obermeyer is a fashion Skiwear manufacturer. The company is headquatered in Aspen Colorado with two major suppliers in China and Hong Kong. The company’s product is offered in five different “genders” men’s women’s‚ boy’s‚ girl’s‚ and prescholers
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