1) Summary of Obermeyer Case
Sport Obermeyer, Ltd. was founded by Klaus Obermeyer in Colorado, in 1947. As an Aspen ski instructor, he became aware of the need to keep his ski students warm and dry. In 1985, Klaus Obermeyer in association with Raymond Tse decided to establish Obersport Ltd. This joint venture was used to combine production of Sport Obermeyer products in the Far East. Obersports is responsible for the raw material sourcing and production for all Sports Obermeyer’s products in the Far East.
The company is a fashion skiwear manufacturer offering a line of ski apparels including parkas, ski suits, ski pants, sweaters, & accessories. Their products are proposed in five different genders: men’s, women’s, boys’, girls’, and preschoolers’. Within each “gender”, numerous styles are offered, in diverse colors and sizes. The estimated sales were US $ 32.8 million in 1992. The company market is divided in two parts: 45% occupied by the children’s skiwear and 11% by the adult skiwear. The dominant production is in Hong Kong and China. Obermeyer sourced most of its products thought Obersport. Obersport purchased from vendors all around the world. Design begins in February of the year before. As soon as designs are finalized, samples are produced and shown to retailers during the Las Vegas show.
The Sport Obermeyer case describes the forecasting, planning, and production processes of a global skiwear supply channel. Each year, the company must estimate the volumes of each style/size/color to produce. Moreover Obermeyer is facing new pressures in the marketplace from Columbia Sporting Goods.
Indeed the challenges of the company are to determine the appropriate production for the projected demand. The company could improve its forecasting methods by estimating the risk associated with the production of each style in order to achieve a more dynamic factoring and reduce inventory production between the factories in Hong Kong and China.
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