Recommendations to Wally continued: Excess merchandise and sold at deep discount Or company ran out of most popular items Sport Obermeyer PowerPoint Presentation: The sum total of these problems was that it was difficult to match demand with supply. Increase production capacity by: Can you come up with a measure of risk associated with your ordering policy?
Case Discussion Questions Using the sample data given in Tablemake a recommendation for how many units of each style Wally should make during the initial phase of production.
Regulatory limits of goods that can be imported into US.
What factors and trends are aggravating the situation? Solution Summary Here is just a sample of what you will find in the solution: Even though the Chinese manufacturing was cheaper because of low cost labor, it was of an indifferent quality and was inflexible in changing over from one line to another.
This leads to under stocking of those designs that are in high demand and the company is not able to meet the orders of the retailers.
Recommendations to Wally continued Sport Obermeyer can decrease the minimum order quantities by providing incentives to its suppliers to have more flexible production lines.
On the other hand the Hong Kong facility was flexible and was manned by skilled workers, the cost of labor pushed up the prices. Identify the elements of over and under-stocking costs and risks in this case.
For example, arevarieties of zippers really necessary? How should Wally think both short-term and long-term about sourcing in Hong Kong versus China?
What are the key factors that contribute to these costs and risks The elements of over and under-stocking costs and risks arise from the ineffective forecasting of demand for the year. However, a large minimum order quantity for a particular style of parka forces us to order either many parkas or none.
Expedite orders through information sharing with suppliers.
This measure should be quantifiable. Improve the demand forecasts made internally by the Buying Committee in November just before Speculative Production. Decrease lead times for both raw materials and finished goods, thereby allowing more time to utilize existing capacity. Topic Hong Kong China Actual labour content per parka incl repair work Ignore price differences among styles in your initial analysis.
The factors and trends that are aggravating the situation are the increasing variety that needed to be manufactured and the increasing competition.
This increased flexibility can come from: Parkas Obermeyer produceparkas every year Capacity: Stock outs on most popular items during peak selling Opportunities: Improved process design e. Parkas Wally studied the committee forecasts Estimated the early production of each style Demand and forecasts for last year analysed Standard deviation of demand was twice the standard deviation of buying committee forecasts Forecast distribution for each style as a normal random variable With mean equal to average of committee forecasts Standard deviation twice of committee forecasts PowerPoint Presentation: What makes it difficult for Sport Obermeyer to match supply with demand?
You should be sure to look at both sides of the equation - supply and demand. Excessively long lead times, though this is the nature of the industry Minimum order quantity at Chinese manufacturers Leftover unpopular merchandise at end of selling period.
On the other hand those designs that are overstocked are left behind from the previous year and have to be sold at deep discounts, far below the manufacturing cost. What is the difference if any between the two initial production commitments?
Choose suppliers of raw materials more on the basis of D than C. Competition from value-oriented sellers like Columbia. Case Discussion Questions Repeat your methodology and assume now that all 10 styles are made in China.
What kind of sourcing policy do you recommend?Ch 03 Case Sport Obermeyer. Sport Obermeyer.
Sport Obermeyer. Obermayers Solutions. Sport Obermeyer Final PDF. Sport Obermeyer Case 1. How many items should Wally Obermeyer order during initial phase of production?
The main purposes of operational changes are to switch from speculative to reactive production and decrease lead time on 4/4(4). Sport Obermeyer’s Relationship with Obersport In this global supply chain, Sport Obermeyer operates in the US and specializes in the demand side by coordinating activities such as monitoring fashion trends, designing the parkas, and selling the parkas by entering into relationships with retailers.
Short term operational changes Sport Obermeyer Case Study 1. Sport Obermeyer Case Study Presented By: Gourav Anvekar Ranjan Melanta Jerrin Mathew Kunal Savlani 2. Agenda Introduction and background Supply Chain Timelines Challenges Analysis Recommendations Summary 2 Sport Obermeyer Case Solution Abhijit Kumar.
Sport Obermeyer glenferry. 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.
3- What operational changes would you recommend to Wally to improve Obermeyer’s performance? Sport Obermeyer Case Study. How About Make It Original?
Let us edit for you at only. Sport Obermeyer, Ltd. was founded by Klaus Obermeyer to provide U.S. skiers with the same protective and stylish clothing and equipment available in Germany.
With a history of innovative new products and leading styles, Sport Obermeyer developed into a prominent competitor in the U.S. skiwear market selling its products in U.S.
department. Sport Obermeyer Ltd. Case Solution,Sport Obermeyer Ltd. Case Analysis, Sport Obermeyer Ltd. Case Study Solution, The case describes the operations to design clothing for skiers and merchandising company and its supply partner.
Represents the production planning for sh.Download