My decision is to find a methodology of calculating more accurate demand and supply figures to address the unpredictable world of short life cycle fashion. A good decision would result in minimizing the order cycle lead time necessary to produce the ski wear and have it delivered to retailers in time by establishing a method that would ensure each prediction as a personal decision making process and not the thoughts of a few strong-willed individuals. Another criterion would be by gathering data that would provide clear indication how end-consumers would respond to the company’s current line. A good solution 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, intuition and sheer speculation when making this decision. I will identify how many units of each style I should make during the initial phase, the outcome of producing the same articles in China as opposed to Hong Kong and the operational improvements that will assist Sport Obermeyer to improve performance.
Sport Obermeyer, Ltd. was founded by Klaus Obermeyer to provide U.S. skiers with the same protective, stylish clothing and equipment available in Germany. Over the years, Sport Obermeyer developed into a preeminent competitor in the U.S. skiwear market. Its estimated sales in 1992 were $32.8 million. The company held a commanding 45% share of the children’s skiwear market and 11% share of the adult skiwear market. Obermeyer offers a broad line of fashion ski apparel, including parkas, vests, ski suits, shells, ski pants,...
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