Sport Obermeyer Case (Operations Management)

Andrew Vaccarrazza
Jennifer Wadsworth
Ryan Ordonez
Matt McKinney
John Fung
OPM 181 T-TR 4:30PM

1. Based on analyzing the Optimal Cycle service Level for seasonal items (single order) we were able to come up with the following recommendation for the initial phase.
Style O*
(Hong Kong)
Gail 1288
Isis 1429
Entice 1550
Assault 2870
Teri 1707
Electra 3025
Stephanie 2019
Seduced 4337
Anita 4426
Daphne 3671
Total 28705 What if capicity was limited to 10,000 units?
Style O* Ratio Aspect
Gail 1288 489.3245
Isis 1429 542.8919
Entice 1550 588.861
Assault 2870 1090.343
Teri 1707 648.507
Electra 3025 1149.229
Stephanie 2019 767.039
Seduced 4337 1647.671
Anita 4426 1681.483
Daphne 3671 1394.651
Total 26322 10000

3. Repeat your methodology and assume now that all 10 styles are made in china. What is the difference between the two initial production commitments?
With repeating the methodology from number one and all 10 styles being made in China, The following data was gathered.
Style O*
(Hong Kong) O*
(China) Difference
Gail 1288 1338 -50
Isis 1429 1516 -87
Entice 1550 1803 -253
Assault 2870 2889 -19
Teri 1707 1803 -96
Electra 3025 3120 -95
Stephanie 2019 2148 -129
Seduced 4337 4510 -173
Anita 4426 4714 -288
Daphne 3671 3834 -163
Total 26322 27675 -1353

As you can see the difference in the two initial productions is showing China produces more with an end result of a higher CSL when just looking at production levels.
Location CSL Q* Profit
Hong Kong 0.743 26322 2508890
China 0.799 27655 2699558

Another group of acting variables are Q* and the profitability of each choice. As shown above China continues to be our top choice.
4. What operational changes would you recommend to Wally to Improve performance?
One of the main issues with performance is quality control. Wally should focus on cross-training the employees so they can complete more than one production process and at the same time have a wider picture of