Preview

Sport Obermeyer

Satisfactory Essays
Open Document
Open Document
501 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Sport Obermeyer
The Sample Problem

Objective: To prepare a production schedule according to demand forecasts made by the design committee.

Constraints: 1. Minimum order quantity at: Hong Kong – 600 China -1200 2. Total order quantity (1st schedule): 10000 3. Almost Half of production to be done each in China and Hong Kong

Expected Safe Margin of Production: Average Forecast – 2* standard Deviation

|Style |Price |Average |Std Dev |2 * Std Dev |Safe Order |
| | | | | |Size |
|Gail |110 |1017 |194 |388 |629 |
|Isis |99 |1042 |323 |646 |395 |
|Entice |80 |1358 |248 |496 |863 |
|Assault |90 |2525 |340 |680 |1845 |
|Teri |123 |1100 |381 |762 |338 |
|Electra |173 |2150 |404 |807 |1343 |
|Stephanie |133 |1113 |524 |1048 |65 |
|Seduced |73 |4017 |556 |1113 |2904 |
|Anita |93 |3296 |1047 |2094 |1202 |
|Daphne |148 |2383 |697 |1394 |990 |
|Totals | |20000 | | |10572 |

Although we have seen the safe order size but the order size do not confirm with the minimum order size requirements of the plants in Hong Kong and China. We therefore need to drop the orders of those products as they are risky and may result in loss. We can make order allocations as:

1. Allocation 1 : Dropping of ISIS, STEPHANIE, TERI.

Total Remaining order size =
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Group Collaboration Draft
    • 804 Words
    • 3 Pages

    Group Collaboration Draft

    Q4. What is the economic order quantity (use unit price only, do not include transportation costs) if we purchase everything from CousinsAg? From Dong Hai Supply?…

    • 804 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Burkinshaw Plc
    • 1423 Words
    • 6 Pages

    Burkinshaw Plc

    The Chinese department store’s order would require significant communication with the UK based research and development centre which would take time to develop new ideas for products and cost money as well. The factory is also running at high levels of capacity with capacity utilisation of 95% which is 30% more than the UK factory. Since the factory is running at a higher capacity utilisation level it means that the number of defective products has raised as well as the care for quality has decreased and volume has increased. Andrew is worried this might not give the good impression that is needed from the company as they are trying to sell high quality British products. The amounts of defective products in the Chinese factory are 7.5% and the total output is 10 million units this means that 750K of the produced units is defected. This would put great pressure onto the company in order to reduce the amount of defective products so that they can provide the high quality products to this large department store. If the product has poor quality people will complain to the Chinese department store and in turn this will lead back to Burkinshaw which will ultimately lead less revenue.…

    • 1423 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Narragansett Yacht Company
    • 1780 Words
    • 8 Pages

    Narragansett Yacht Company

    b. What is the reorder point (in units) for each supplier? Assume for now that no safety stocks are held and use a 360-day year.…

    • 1780 Words
    • 8 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Shuzworld task 2 Decision Analysis Tables only
    • 478 Words
    • 10 Pages

    Shuzworld task 2 Decision Analysis Tables only

    Note: Shanghai would like to increase production to 2,800 units. The demand is remaining the same. The overage will be an excess stored at the SI and SH plants.…

    • 478 Words
    • 10 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Beer Game Paper
    • 502 Words
    • 2 Pages

    Beer Game Paper

    The factory have to decide how much they order; the order size is communicated only to the supplier and not to other entities. Furthermore, ordering information is transferred with delays and the lead-time in operations also results in delays.…

    • 502 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    QAT 3
    • 553 Words
    • 3 Pages

    QAT 3

    In order to minimize total cost, the order size should be 337 when company A orders new inventory.…

    • 553 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Ll Beans
    • 832 Words
    • 4 Pages

    Ll Beans

    3. Assuming LL Bean manages to derive the correct forecast, what do you think about their…

    • 832 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Bus 307 Operations Management and Quantitative Techniques
    • 2134 Words
    • 9 Pages

    Bus 307 Operations Management and Quantitative Techniques

    With the MPS on hand it is clear that Realco will indeed meet their customer’s requirements based on the production available to include the promised shipments in 3 weeks. On the 8th week however, they will have a surplus of inventory. Mr. Chang the owner stated that the ending inventory of 51,650 units was too high and should be used as a Reorder Point (ROP) to indicate that there is a problem with overproducing. Fortunately Realco has not overpromised since they are able to meet their customer’s demands with the excess inventory. This does indicate that production numbers need to be readjusted to accommodate consumer demand.…

    • 2134 Words
    • 9 Pages
    Better Essays
    Read More
  • Good Essays

    QAT1 Task 3 309
    • 611 Words
    • 3 Pages

    QAT1 Task 3 309

    Step 5: Round up to the nearest Unit to get you final answer. In order to minimize total cost, the order size should be 4560 when company A orders new inventory.…

    • 611 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Hrm 531 Week 9 Final Paper
    • 472 Words
    • 2 Pages

    Hrm 531 Week 9 Final Paper

    | an attempt to respond to predicted demand within the constraints set by product, process and location decisions…

    • 472 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Little Field
    • 770 Words
    • 4 Pages

    Little Field

    Following the decision to purchase a machine, our focus shifted to the inventory level and the reorder point. It was obvious that the old reorder point was not going to keep up with the incoming demand level, especially considering the four day lead time. Our initial thinking was to set the reorder point to a level where the inventory would have sufficient level of safety stock to avoid stocking out before the next batch of order came. Also we needed determine the quantity of inventory to order, making sure to take into account the ordering cost of $1000 as well.…

    • 770 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Harris Seafood Case
    • 1471 Words
    • 6 Pages

    Harris Seafood Case

    Question Number One (1) Value the processing plant proposal. Ignore the Industrial Revenue Bond financing. Assume: Market Risk Premium 8.8%, Riskless Rate 11.41%, and Harris Long Term Debt Rate 13.5%.…

    • 1471 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Sports Obermeyer
    • 1404 Words
    • 6 Pages

    Sports Obermeyer

    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 prove very costly given the extremely long lead times of it’s suppliers in Hong Kong and China. In the past, Sports Obermeyer had relied on a group of company managers, called the “buying committee” to make a consensus forecast on the demand of for each of the company’s various products but it’s track was not particularly impressive. In the 1991-92 season, for e.g, some women’s parka styles outsold the original forecast by 200%, while sales of other styles amounted to less than 15% of the forecasted amount [Ref 1] [Exhibit 1]. Going forward the company needed a more reliable way to forecast demand before seeing orders, reduce lead times and decide on the production levels of it’s suppliers in Hong Kong and China.…

    • 1404 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Mathematical Patterns and Relations
    • 3656 Words
    • 15 Pages

    Mathematical Patterns and Relations

    After viewing some background information on the yowie (a short video and newspaper article), we were given the foot length of the yowie (43cm) and asked to find its height from this measurement. We were asked to collect a series of measurements of our body proportions. After some discussion about not getting precise enough approximation for some body proportions, specifically the a/b/c finger, we decided to only include foot length, height and arm span as we thought that this was the essence of the our initial question. Based on our initial foot measurements we agreed that for our estimation of the yowie’s height we would double Tamara’s height as her foot measurement doubled was the closet to the yowie’s (157x2=314) making our height estimate to be 314cm. Our body proportion can be seen in table 1.…

    • 3656 Words
    • 15 Pages
    Good Essays
    Read More
  • Good Essays

    Odysseus Case Study from Global Marketing Management by Keegen
    • 372 Words
    • 2 Pages

    Odysseus Case Study from Global Marketing Management by Keegen

    • 8 products with 600 sizes and types – small batches of orders (not mass production)…

    • 372 Words
    • 2 Pages
    Good Essays
    Read More

Related Topics