Alliance with a supplier/manufacturer who can meet unforeseen excess demand in a short period of time. These sub-contractors should be chosen for their dependability to meet the demand rather than their low cost component. Question 3. How should Obermeyer management think (both short term and long term) about sourcing? What sourcing policy would you
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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
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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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Case: Sport Obermeyer Using the sample data given in Table2-20‚ make a recommendation for how many units of each style Wally should male during the initial phase of production. Assume that all of the 10 styles in the sample problem are made in Hong Kong and that Wally’s initial production commitment must be at least 10‚000 units. Ignore price differences among styles in your initial analysis. Style Mean Std Dev produce (avg-2SD) Hong Kong Gail 1017 388 639 629
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Sport Obermeyer – Case Review In this case study we discuss the problems faced by Sport Obermeyer‚ a fashion skiwear manufacturer. Every year the company had to produce a new line of clothing according to the latest trends and fashions. The success of the company depended on how well Sports Obermeyer was able to predict market response to different styles and colors. Intense competition had made forecasting really difficult. The two scenarios that resulted were products in style sold out and the
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Obermeyer Sports‚ Ltd. Introduction Sports Obermeyer‚ Ltd‚ a fashion skiwear manufacturing company‚ faces an array of issues before starting a new production cycle. The right timing for the production decision‚ prediction of production volume‚ associated risks‚ production process key steps that add value‚ and productivity issues are all concerns that must be addressed. The first step of Obermeyer’s decision making is to decide sample production volumes. The sample production (10‚000 units
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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
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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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1- What makes supply chain management at Sport Obermeyer so challenging? The biggest challenge Sport Obermeyer is facing is uncertainty. The demand for each of the styles is completely un-deterministic and is very hard to predict. At the same time‚ Obermeyer production cycle is very long which is making it nearly impossible to adapt to the market. On one hand‚ if the produced items do not sell‚ Obermeyer incurs the loss of manufacturing cost. On the other hand‚ if we do not produce enough of the
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2.) The cycle time between initial design of the ski parkas and the final sale to retailers begins in Febuary 1992 and ends in Septembe1993r‚ a total cycle time of approximately seventeen months. This lengthy cycle time is necessary for Sport Obermeyer to develop several attractive designs for the annual Las Vegas trade show where 80% of sales are made and eventually these designs are finalized six months later. This cycle also incorporates several major processes starting with the selection of
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