Sport obermeyer case summary
Obersport began developing a variety of quick-response initiatives such as to shorten lead times to overcome them. The quantities which amounted to were manufactured in China and that which were close towere manufactured in Hong Kong in the first production cycle.
The demand for each of the styles is completely un-deterministic and is very hard to predict.
Sports obermeyer case study discussion questions
With strict quota restrictions limiting the number of units that can be imported from China into the United States, it is necessary to ensure the orders brought into the US before the quota has hit a maximum. S skiers with the samehigh quality ski wear that is protective and , stylish and comparable in standards to the clothing and equipment available in Germany. The Bullwhip Effect or Whiplash Effect is an observed phenomenon in forecast-driven distribution channels. The case allows students to understand how such a model is developed within an organization and to evaluate the models presented. On one hand, if the produced items do not sell, Obermeyer incurs the loss of manufacturing cost. Moving up the supply chain from end-consumer to raw materials supplier, each supply chain participant has greater observed variation in demand and thus greater need for safety stock. The first thing put into place was we created a plan for how we would structure this assignment. Increasing the re-active capacity: o It would be best for Obermeyer to produce as much as possible from their production after they see the market reaction. Recently, the company has faced increased competition from other winter apparel makers, namely Columbia Sportswear. In the s, these changes had reduced delivery times by more than one month. A good decision would result in minimizing the order cycle lead time necessary to produce the ski wear and have it delivered to retailers in time by establishing a method that would ensure each prediction as a personal decision making process and not the thoughts of a few strong-willed individuals. We decided to meet every Tuesday but with limited resources we decided to start meeting twice a week for the last three weeks to help us move at a faster pace through the project.
Sport Obermeyer is a high-end fashion skiwear design and manufacturing company located in Aspen, Colorado. Therefore, the company begins booking production the previous November, or about a year before goods would be sold, based on speculation about what retailers would order.
Demand size: o Styles for which higher demand are expected should be produced first. This is the type of forecasting relevant to the Obermeyer case. These four products have COV less than 0.
On one hand, if the produced items do not sell, Obermeyer incurs the loss of manufacturing cost. In periods of rising demand, down-stream participants increase orders. View Details.
Sport obermeyer case summary
Referring to exhibit 1, the four products to be produced in China in the first production cycle are: Assault, Seduced, Entice and Electra. The deviation in view is good See Exhibit Increase Market insight: o Obermeyer performance highly depends on the market reaction. During the mids, several factors rendered this approach obsolete:? Obermeyer persuaded some of its important retail customers to place their orders sooner, providing the company with valuable foreword information such as the popularity of certain styles. The company has a global supply network; however, most of its products are outsourced through the operations in Hong Kong and China which is a joint venture between Obermeyer and its Hong Kong partner. Coupling this with their inflexibility to meet unexpected or unplanned demand puts a big challenge to Obermeyer.
This can be achieved by having more market research done with lead users and more Obermeyer retail stores to have direct interaction with the real customers. Our first meeting was Tuesday November 3rd, Every value below 0.
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