demand requires a heavy reliance on accurate forecasting. Sport Obermeyer‚ Ltd is in the business of manufacturing skiwear which includes short life cycle items due to their short selling season and dependence on trends in fashion. Each year Sport Obermeyer is challenged with matching supply to demand because production must be forecasted more than one year ahead of the expected selling season. These forecasts determine how much Sport Obermeyer should produce‚ but still entail an element of risk. Labor
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Case: Sport Obermeyer Vijayakrishnan Krishnamurthy‚ Kara Maruszak‚ John Mulka University of Toledo BUAD 6600 July 4‚ 2014 Executive Summary Sport Obermeyer‚ Ltd. was founded by Klaus Obermeyer to provide U.S. skiers with the same protective and stylish clothing and equipment available in Germany. With a history of innovative new products and leading styles‚ Sport Obermeyer developed into a prominent competitor in the U.S. skiwear market
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Sport Obermeyer case (Venugopal Vinjamuri and Kailash Kothari) In order to determine the quantity of each product that should be purchased at the outset so as to fill half of the total forecasted volume (10‚000 units)‚ we need to calculate the purchase price per product (something that isn’t provided in the case) and also the salvage price per product. Let’s start with the cost information of the Rococo Parka. The cost to produce one piece in Hong Kong is $60.08 while the cost in China is $51.92
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The Sport Obermeyer case is mainly about the production and manufacturing process of a skiwear product. Sport Obermeyer is a high-end fashion skiwear design and manufacturing company located in Aspen‚ Colorado. It sells the products through department stores and ski shops. The company has a global supply network; however‚ most of its products are outsourced through the operations in Hong Kong and China which is a joint venture between Obermeyer and its Hong Kong partner. This case describes the information
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Sport Obermeyer‚ Ltd. General Background Klaus Obermeyer emigrated from Germany to the United States in 1947 and started teaching at the Aspen Ski School. He was credited with making the first goose-down vest from a comforter in the 1950s. In 1992‚ estimated sales were $32.8 million with 45% share of children ’s skiwear market and 11% share of the adult skiwear market. It produced and sold parkas‚ vests‚ ski suits‚ shells‚ ski pants‚ sweaters‚ turtlenecks‚ and accessories
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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
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in Hong Kong are Lower labor cost Larger lot size But the areas of the concern for producing in China are: Quality and reliability Slower Less Flexible Hence for all these reasons‚ Long term planning should be done in the China 2. Study Exhibiit 10. How Wally should do Forecasting so that error is minimum? 1. Improve the demand forecast made internally by the buying committee in November just before Speculative Production (Instead of using juts a simple average of the individual
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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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3. How should Obermeyer management think (both short-term and long-term) about sourcing in Hong Kong versus China? Long Term From a quality standpoint‚ production in Hong Kong would be ideal considering the repair rate in China is five to ten times greater than it is in Hong Kong. Although the costs of repair are relatively low‚ Obermeyer is a high quality apparel company‚ and its customers in all likelihood want durable products. Not only would this keep customers happy in the short term‚ but
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Sport Obermeyer Sport Obermeyer‚ Ltd was created around 1947 by Klaus Obermeyer. While teaching at an Aspen Ski School‚ Klaus noticed a difference between the clothing that his students wore and the clothing skiers wore in his native Germany. Although Klaus started out by traveling to Germany to find high-performance skiwear that was suitable for his students‚ he designed his own line of skiwear and ski equipment products and that was how Sport Obermeyer‚ Ltd was introduced. Sport Obermeyer
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