Next, we had to modify this order policy because designs Stephanie, Isis, and Teri had initial orders below the minimum order for Hong Kong of Lower minimum order quantities allow Wally to order lower amounts of more products.
We compared our results with the quantitative analysis of this case done by an Industrial Engineering professor at Georgia Tech using constrained optimization and lagrangian multipliers and found that our results were quite similar.
List of issues with impact analysis In the current situation, Obermeyer is facing four broad issues: The company specializes in selling its products in U.
It is same relationship between risk and uncertainty. The minimum order quantity causes the risk to jump to a quite high level for styles with total expected Sport obermeyer minimum less than or so, and we would rather not order these styles in the first round.
CV is the ratio of the standard deviation to the expected mean. The Hong Kong facility should continue to produce the high-end Sport Obermeyer lines.
As costs for manufacturing are reduced due to a more streamlined production process, Sport Obermeyer will be better able to compete at the same price point as Columbia. If replenishment orders are received sooner, then the cost of shipment is greatly reduced since fewer will require air shipment.
The service level has been calculated to be 0. The forecast is now much more risky; for Entice, the order quantity is now greater than the minimum estimate, in addition to being very close to the average forecast.
This ratio has been found by the difference of retail price and cost divided by the difference of cost and salvage value of a unit if not sold.
Obermeyer should consider expanding its market in South America and other European countries. About half of production requests depended highly on demand forecasts still.
Sport Obermeyer should pressure its sales force to promote these items by providing incentives, such as bonuses, to its personnel. The main operational changes that Wally should focus on in order to increase productivity is to initially focus on splitting the seasonal orders into two lots: Using Las Vegas orders reactive capacity for Seduced brand as its high in demand and low in variance and its cost is the cheapest.
The Hong Kong manufacturer also provides higher quality and quicker production times, but at a higher price. The Advanced Technology Series is way of the future. In order to take the greatest advantage of this committee, Wally Obermeyer is utilizing the Delphi method. If need be, the company can also provide discounts for large bulk orders to retailers.
However HK plant would still be kept as a cushion for small size order and unexpected risky circumstances which may occur in mainland. The Fashion Industry is extremely competitive, as well as trendy.
Suppose that we are considering ordering Assault parkas and Electras. For example, zippers, snaps, and insulation can be standardized across many designs, presumably without significant value lost to the customer, and stored for the second ordering cycle and then applied to whichever design ends up being successful.
It would determine the variability of the demand or the ordering policy risk. The EDI will also help in reducing the transportation cost by ordering the faster freight components Sport obermeyer minimum. This joint venture allowed Obermeyer to manage supply and production operations in Hong Kong and China.
Currently, Sport Obermeyer is trying to respond to the demand pulls, by making a wide variety of parkas to attract every buyer. So the total risk for these two styles together is 0. 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 Sport obermeyer minimum a few strong-willed individuals.
In doing so, the risk of overproducing a style, and being forced to sell it at a deficit will be mitigated. Wally should source those designs which have the highest expected demand to China because it allows him to take fullest advantage of the cheaper labor.
This company gained the title of Obersport Ltd. However it would have to bear more monitoring and quality control costs. I will identify how many units of each style I should make during the initial phase, the outcome of producing the same articles in China as opposed to Hong Kong and the operational improvements that will assist Sport Obermeyer to improve performance.
We completed this project on time and did not need the assistance of any extra materials like Gannt charts or critical paths.
The minimum production quantity for a style was units in China and units in Hong Kong and also Obermeyer produced about parkas each year.Obermeyer Sport A Strategic Direction in Forecasting Introduction & Summary Klaus Obermeyer is an innovator in the high-end skiwear industry.
The company began with down filled jackets and slowly began to diversify its product line with high-altitude suntan lotion, turtlenecks, nylon wind-shirts, mirrored sunglasses and more. collaboration Sport Obermeyer Case In the past, there have been problems with the size of Sport Obermeyer's supply chain because it was too big and complex Necessary components (fabric, zippers, thread) all have different lead times, costs and minimum.
Sport Obermeyer Case Study Help, Case Study Solution & Analysis & Sport Obermeyer Case Solution Problem Diagnosis This case described the operations at the merchandising and Skiwear Companyand for its supply partner.
It a. Shop for Ski Clothing at REI - FREE SHIPPING With $50 minimum purchase. Top quality, great selection and expert advice you can trust. % Satisfaction Guarantee. 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 Supply Chain Management MGT June 5, 2 –Without minimum order quantity, Sport Obermeyer should produce Gail before Anita –With minimum order quantity of units, Sport Sports Research Inc. 42 Summary • Intelligent forecast process.Download