Sport Obermeyer‚ Ltd Wally Obermeyer‚ the internal operations manager of Sport Obermeyer‚ a mid-to-high fashion ski apparel company with headquarters out of Aspen‚ Colorado‚ and son of company founder Klaus Obermeyer‚ has two dilemmas at hand. 1) How to forecast demand for specific skiwear items for the 1993-1994 fashion line? 2) Once quantity per item is determined‚ how should production be allocated between factories in Hong Kong and China? Although the case mentions the
Premium Forecasting Future Arithmetic mean
production. As skiing apparel are seasonal products‚ some strategies have to be followed to counter the short life cycle of the product. Considering the above-mentioned issues‚ we recommend the following: * Historical data should be analyzed on a backward time line and compare the initial forecast and updated forecast. Variables such as standard deviation and covariance should be analyzed and applies to current forecasts. * A push strategy should be used to try and get orders before the Las Vegas
Premium Time Term
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
Premium Standard deviation Allocation
Wally Obermeyer is facing a challenge in accurately forecasting the market response and demand for the upcoming season. Historically‚ the company founder‚ Klaus Obermeyer‚ relied minimally on forecast data‚ and more on intuition and artistic tastes. In comparison‚ his son Wally prefers to make decisions based on analytical techniques and information gathering. If Wally’s approach proves successful‚ it can change how Sport Obermeyer approaches its manufacturing processes‚ secure its position long-term
Premium Quality assurance Quality control Manufacturing
demand requires a heavy reliance on accurate forecasting. Sport Obermeyer‚ Ltd is in the business of manufacturing skiwear which includes short life cycle items due to their short selling season and dependence on trends in fashion. Each year Sport Obermeyer is challenged with matching supply to demand because production must be forecasted more than one year ahead of the expected selling season. These forecasts determine how much Sport Obermeyer should produce‚ but still entail an element of risk. Labor
Premium Forecasting Time Profit maximization
Sport Obermeyer 1 Sport Obermeyer’s Time Line and “Speculative” versus “Reactive” Production "NOW" Initial Forecast 9 months Feb … Oct 1992 … 1992 Design of 1993-94 Line. Las Vegas Revised Forecast 5 months Nov … Mar 1992 … 1993 5 months April … Aug 1993 … 1993 "Speculative" Production "Reactive" Production of 1993-94 Line of 1993-94 Line In Feb 1993‚ start design of 1994-95 line. “Speculative” Production 27 Months Sept 1993 Oct 1993 Nov 1993 8 months Dec Jan 1993 1994 Selling of
Premium Standard deviation Economic order quantity Normal distribution
Issue with Impact Analysis Obermeyer has grown into the business of designing and selling winter wears not without any challenges. For this case‚ the main issue can be summed up in managing a global supply chain of short life cycle products with a high demand uncertainty. We can breakdown the main issues into: geographic challenges‚ information’s timing and flow and creating a responsive supply chain to able to balance inventory and demand uncertainty. First is the information timing and flow
Premium Supply chain management Supply chain Management
THE EFFECT OF POSTPONEMENT ON THE PRODUCTIVITY OF AN ORGANIZZATION Introduction:- Over the past few decades‚ logistics activities have gained increasing strategic importance for almost every company all over the world. Fixed costs of production have increased‚ consumer demands have become more complex and are harder to predict‚ both in time and place. Technology is rapidly changing around the world every new day there is a new and advance technology and product life cycles have shortened while
Premium Supply chain management Inventory
Sport Obermeyer case (Venugopal Vinjamuri and Kailash Kothari) In order to determine the quantity of each product that should be purchased at the outset so as to fill half of the total forecasted volume (10‚000 units)‚ we need to calculate the purchase price per product (something that isn’t provided in the case) and also the salvage price per product. Let’s start with the cost information of the Rococo Parka. The cost to produce one piece in Hong Kong is $60.08 while the cost in China is $51.92
Premium Supply and demand Economics Price
Sport Obermeyer‚ Ltd. presents a successful ski apparel company that is addressing logistics-related decisions that face many businesses today. Sport Obermeyer‚ founded in 1947 by Klaus Obermeyer‚ has continued to lead the ski apparel industry since that time through continuous product innovation and fashion-forward styles. Recently‚ the company has faced increased competition from other winter apparel makers‚ namely Columbia Sportswear. Exhibit 1 presents a SWOT analysis of Sport Obermeyer‚ and identifies
Premium Supply chain management Retailing Marketing