Introduction Sport Obermeyer‚ Ltd. presents a successful ski apparel company that is addressing logistics-related decisions that face many businesses today. Sport Obermeyer‚ founded in 1947 by Klaus Obermeyer‚ has continued to lead the ski apparel industry since that time through continuous product innovation and fashion-forward styles. Recently‚ the company has faced increased competition from other winter apparel makers‚ namely Columbia Sportswear. Exhibit 1 presents a SWOT analysis of Sport Obermeyer
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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 of what the end consumers’ reaction to the line is makes this a very careful blending of analysis‚ experience
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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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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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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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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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Sport Obermeyer‚ Ltd Wally Obermeyer‚ the internal operations manager of Sport Obermeyer‚ a mid-to-high fashion ski apparel company with headquarters out of Aspen‚ Colorado‚ and son of company founder Klaus Obermeyer‚ has two dilemmas at hand. 1) How to forecast demand for specific skiwear items for the 1993-1994 fashion line? 2) Once quantity per item is determined‚ how should production be allocated between factories in Hong Kong and China? Although the case mentions the
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The Sample Problem Objective: To prepare a production schedule according to demand forecasts made by the design committee. Constraints: 1. Minimum order quantity at: Hong Kong – 600 China -1200 2. Total order quantity (1st schedule): 10000 3. Almost Half of production to be done each in China and Hong Kong Expected Safe Margin of Production: Average Forecast – 2* standard Deviation |Style |Price |Average |Std Dev |2 * Std Dev |Safe
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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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