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
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revenue and market share. Effective immediately I am recommending we increase inventory of raw materials for production in order to limit the lead time in this step of the supply chain. Our production team will work with our business partners at Obersport to procure excesses in long life raw materials. While there will be an incremental cost‚ we are likely to see per unit cost decrease based on the volumes purchased and cut down our total cycle time. Lastly‚ I am recommending that we continue
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that sells its products through U.S. department stores and ski shops. Although the company has a global supply network‚ most of its critical outerwear products are sourced through the Hong Kong-based company Obersport‚ a joint venture between Sport Obermeyer and a Hong Kong partner. Obersport‚ in turn‚ manages supply and production operations in Hong Kong and China. This case provides an in-depth description of the planning and production processes Sport Obermeyer and its supply channel partners
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times In order to reduce lead times‚ Obermeyer can persuade retailers to place orders ahead of time by gathering sales at an earlier time of the year‚ allowing the company to satisfy these orders. Additionally‚ they can purchase greige fabric by Obersport ahead of time in order to decrease the lead times of acquiring fabrics during high demand. They can also look into manufacturing options closer to Hong Kong to reduce the lead time of production and preparation of raw materials. Additionally‚ since
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Sport Obermeyer – Case Report Module One‚ Session Six Supply Chain Inventory Management Darcy Shannon October 27‚ 2010 Sport Obermeyer – Case Report Executive Summary In order to minimize the degree of stock outs‚ and markdowns‚ I have decided for the initial Hong Kong order to produce those products that have the smallest standard deviation when comparing the Buying Committee Forecasts. An attempt will also be made to purchase the lowest cost items within this group‚ as initial order size of
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the operations and production facilities are subcontracting the manufacturing to different facilities in China‚ Sports Obermeyer is really concerned about allocating production between factories. Quality and reliability were also a big issue. Obersport Ltd was a joint venture to coordinate the production of Sport Obermeyer products in the Far East. It was also responsible for fabric and component sourcing for Sport Obermeyer’s entire production. The new facility in Lo Village‚ which was run by
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PRODUCT FLOW ALONG SUPPLY CHAIN: SOURCING IN CHINA vs. HONG KONG They are many aspects involved making a decision on which styles to source from China and which styles to source from Hong Kong. The differences between the producing the products in China and Hong Kong are: * ORDER SIZES: The minimum production quantity for a style in China is 1200 units while in Hong Kong it is 600 units. Thus Hong Kong factory can produce smaller order quantities effectively‚ thus enabling the company’s
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large shipment of containers of garments well below manufacturing cost); Supply chain problems ( lack of information sharing between the various components of the supply chain‚ for instance sales information between retail outlets‚ Obermeyer and Obersport as well as the two major suppliers in China and Hong Kong. Inability to enter into a collaborative partnership with supplier’s thereby creating a forecasting problem at the production level. Though
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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
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Introduction 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
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