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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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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Planning (Long term-2 yrs planning and short term- one month planning)? Long term Planning The basis of the operations planning should be as follows: To decide the structure of supply chain In-house function‚ production‚ location and warehouse Modes of transportation to be used Short term Planning Demand pattern‚ orders from the retailers‚ current market conditions‚ trending items‚ transportation routes and inventory stocks Short term planning for sourcing: Hong Kong Because of the
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Executive Summary In order to address long lead times and a high inventory count with uncertain demand‚ 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 10‚000 units allows. Combined‚ this will allow for the least amount of risk when using the limited information we have for the
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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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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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Executive Summary There were multiple issues weighing heavily on the mind Wally‚ a VP at Sports Obermeyer‚ in November of 1992. Sports Obermeyer‚ a successful manufacturer of ski apparel was having trouble planning the manufacturing levels of its various skiwear items for 1993-94 based on whatever scant information it had on the end customers’ likes and dislikes. Waiting to make these decisions till after the Las Vegas trade show‚ the one event which would give reliable retailer feedback‚ would
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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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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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