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.
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Obermeyer offers a broad line of fashion ski apparel, including parkas, vests, ski suits, shells, ski pants, sweaters, turtlenecks, and accessories. Their products were offered in five different genders: In the current situation, Obermeyer is facing two major issues: The best way to mitigate the inability to meet the demand of retailers during peaks sales would be to forecast the demands with either past data or with the help of a forecasting committee.
It would be idea for Obermeyer to forecast future demand with the help of a forecasting committee. To come over the confusion of which city to continue production in, Obermeyer should choose to continue short term production in Hong Kong but the Long Term production should be in China.
Sport Obermeyer has the following main problems: Inability to meet the exact demand of the retailers of the latest fashion which is actually a result of poor forecasting of the jackets: Sport Obermeyer depends on the Las Vegas show to determine what fashions were going to dominate the season coming up and then produce the best fashions.
This was a problem because the gap between the show and the production of final product and making it available to the Sport obermeyer handout essay takes time and meanwhile anything can happen.
Thus a rigid and accurate forecast must be made based on data as well as experience. They are in a dilemma of which location to continue their production in — Hong Kong or China: Raymond Tse had built the new factory in China where the cost was less but the quality had to be compromised.
Moreover, the labor had to be trained and a higher minimum order was required.
These issues were addressed by the Hong Kong facility where quality of product was good, the labor could multitask, a lower minimum order size was required and the time of production was low.
But the overall cost was high. In order to overcome the forecasting issue, effective forecasting methods like forecasting with the committee should be adopted. The calculations can be based on the newsvendor problem and will help to forecast the optimum requirement of products.
To overcome the dilemma of where to produce, the production initially continue in Honk Kong andshould be eventually moved to China. Later, Hong Kong should be used when the minimum order size does not suit that in China. Sport Obermeyer has the issue of lack of stock during peak sales of certain types of parkas.
This is very similar to the New Vendor problem. The newsvendor problem is a classic in management science partly because selecting an optimal inventory level in the face of uncertain demand is an important problem but also because the solution is so elegant and intuitive: Precisely, the Newsvendor Framework is: Moreover, the higher lead time and constraints of minimum number of orders defined by factories worsen the situation.
Sport Obermeyer should produce the designs and styles that have the least standard deviation because they are least risky. For these products, the demand uncertainty is very less and thus there is a very low chance of incurring a huge loss.
A loss, if any, will not be taxing for Obermeyer and will be in a very low level. Moreover, the trade show results from Las Vegas are not required to produce these parkas. Thus their production can be started immediately.
On the other hand, Obermeyer would want to wait till the trade show is complete before starting the production of the parks with a high standard deviation because it has a higher risk. Any loss incurred sue to this segment will be huge and taxing. The following table shows the demand forecast by the forecasting committee.
The uncertainty in these two cases is the chance of being outside the range. Similarly it follows for the rest of the data. With the Newsvendor problem, the Demand Forecast would be: If the demand is more than double of what has been forecasted there is no issue at all and any factory Hong Kong or China can be chosen.
If the demand is less what we have forecasted it again depends on how much lesser than the minimum order size it is. As we have seen all the forecasted demands are greater than and therefore there will not be much of an issue. A typical scenario is when the demand is in between the minimum order and the double the minimum order.
For such a situation we will have to further analyze. We cannot blindly order the minimum both times not can we split the demand into half.View Essay - Sport Obermeyer (Handout) from COMPUTER S Operating at National Taiwan University.
1 Sport Obermeyer 2 Sport Obermeyer’s Time Line and “Speculative” versus “Reactive”.
Sport Obermeyer Case Analysis Essay Sample. There were two main driving issues behind our analysis of this Sport Obermeyer case: the measurement and understanding of demand from uncertain and disparate forecasts, and the allocation of production between factories in Hong Kong and Mainland China (Lo Village, Guangdong). *Sport Obermeyer:* Case Analysis Pratyusha Lakshmi Puranam Executive Summary: Obermeyer offers a broad line of fashion ski apparel, including parkas, vests, ski suits, shells, ski pants, sweaters, turtlenecks, and accessories. View Essay - Sport Obermeyer (Handout) from COMPUTER S Operating at National Taiwan University. 1 Sport Obermeyer 2 Sport Obermeyer’s Time Line and “Speculative” versus “Reactive”.
NOTE: This handout is not required course material. It is provided only in response to requests by interested students. I did not expect any study group to give the exact answer that I provide here, or to follow the exact same line of argument.
Sport Obermeyer – First Order Determination. Sport Obermeyer (Handout) Sport Obermeyer. Sport Obermeyer. Sports Obermeyer. Essays.
The Light Between Oceans: A Novel. The Sympathizer: A Novel (Pulitzer Prize for Fiction) Sport Obermeyer Case 1.
How many items should Wally Obermeyer order during initial phase of production?/5(6). Essay about Sports Obermeyer Case Summary Sport Obermeyer was founded by Klaus Obermeyer as a ski wear manufacturer. Klaus was a teacher at aspen ski school and while teaching he realized that the ski wear available to his student were impractical, as they were less protective and less stylish.
SPORT OBERMEYER, LTD. and list the names of all group members on the write-up. Refer to the handout titled “Guidelines for Case Study Write-ups” for more information on the content and format for case write-ups. In this respect it is the aim of this essay to discuss that “Diversity makes good business case.” To begin with.
Sport Obermeyer should NOT eliminate its business relationship with Obersport. it should retain its relationship and seek to improve the coordination between Sport Obermeyer¶s demand-side activities and Obersport¶s supply-side activities.
and/or a different set of business relationships. Instead.