Sport obermeyer case. Sport Obermeyer Case 2019-01-21

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The Sport Obermeyer case

sport obermeyer case

Thus, we calibrated our order quantity formulas to sum to 10,000 units. The case provides the information that will help to determine the type of supply chain design and provide the recommendation in order to avoid the demand uncertainty and manage the risks in unplanned events. We wanted to use a formula that took into account the average forecast as well as the standard deviation - in other words, we wanted to account for both the expected demand and the uncertainty. The Bullwhip Effect or Whiplash Effect is an observed phenomenon in forecast-driven distribution channels. For the highriskitems β€” Daphne,Isis,Anita,Teri,Stephanie β€”the orderquantityhasbeenkeptat the minimumpossible amount.

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SPORT OBERMEYER CASE by kobe ronaldia on Prezi

sport obermeyer case

First introduced were computerized systems to slash time in processing orders and computing raw-material requirements. This is just a sample partial case solution. 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. The novel, Celebrated Cases of Judge Dee, revolves around three complicated murders that Judge Dee and his advisors investigate. As mentioned earlier in the paper Hong Kong workers were trained in many different facets of production whereas China's worker were trained in one specific area of production. It shows us the volatility and the variation in the data per unit of mean.

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Sport Obermeyer Case Study Essay Example for Free

sport obermeyer case

It is provided only in response to requests by interested students. The biggest challenge Sport Obermeyer is facing is uncertainty. The first option for Wally is to source in Hong Kong. Question 1 Using the sample data given in Table 2-20, make a recommendation for how many units of each style Wally should make during the initial phase of production. The first thing put into place was we created a plan for how we would structure this assignment.

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Sport Obermeyer Ltd.

sport obermeyer case

An in-house buying committee approach was allocated to generate these forecasts. In the 1990s, these changes had reduced delivery times by more than one month. Before Wally made the decisions, he needed to know how to make forecast as close as possible to the market demand according to the previous record and how to balance orders between operations in Hong Kong and China to make sure the flexible production line and the lowest cost. The biggest challenge Sport Obermeyer is facing is uncertainty. We wanted to use a formula that took into account the average forecast as well as the standard deviation β€” in other words, we wanted to account for both the expected demand and the uncertainty.

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Sport Obermeyer Case

sport obermeyer case

In conclusion, Obermeyer must strategize an effective method of calculating production decisions. Note that in Hong Kong, this risk is much less dire since he can order in 600 unit blocks. We are forced to consider the uncertainty less in our predictions and are more controlled simply by the number of units that we think we need. Processes and Strategies A ski jacket being distributed in the U. In addition, two of the genders, Rex and Klausie, are heavily impacted in their buying decisions by status, and fewer designs would make those designs more recognizable, increasing the status associated with them. The effect is that variations are amplified as one moves upstream in the supply chain further from the customer. The lead times for the company are very high.

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Sport Obermeyer Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

sport obermeyer case

Operational changes that reduce the cost of mismatched supply and demand? Thus, we calibrated our order quantity formulas to sum to 10,000 units. Expedite shipments using faster but more expensive shippers. Apart from this, based on the risk based production sequence, Sport Obermeyer should focus on producing those products in its initial phase, which have lower volatility. . The transportation costs of the company should be optimal. At the same time, Obermeyer production cycle is very long which is making it nearly impossible to adapt to the market.

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Sport Obermeyer Case Study Help

sport obermeyer case

The quantities in this order should be decided based on which items are popular in the Las Vegas fashion show. Introduces production planning for short-life-cycle products with uncertain demand and allows students to analyze a reduced version of the company's production planning problem. This difference in minimum lot sizes cannot be attributed to mechanical advantages because the factories in the two areas use similar equipment as described in the case. An agile supply chain means that Sport Obermeyer needs to build agilty, adaptability and alignment with suppliers within its system. Sport Obermeyer is facing difficulties from its outdated supply chain. Since this number did not sum to 10,000, we multiplied the standard deviation by a scaling factor, k, and solved for order quantity 10,000 units across all designs.


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Sport Obermeyer Case Study

sport obermeyer case

The risk for these orders can be measured using statistics based on the expected standard deviation of demand. The company imported its raw material from Germany that will result in high quality performance clothing. Organization challenges along with competition from competitor companies were major challenges the company had faced. Retailers should be used to promote the products of the company such as through communication mediums, or automating the internal processes and internal systems of the retailers. Obermeyer must comply sample data from the buying committee's forecast and correlate it with Obermeyer's top selling products.

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The Sport Obermeyer case

sport obermeyer case

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. Since demand for each gender would not have to be estimated and split between many designs, it could be tracked over time and a much more accurate forecast could be made. So we are exposed to slightly higher risk due to the other designs having to be ordered in larger quantities, but no design is being ordered in a quantity above 75% of the average forecast or higher than the lowest committee estimate, and so risk is still relatively low. This indicates a total cycle time of approximately seventeen to nineteen months, depending on final shipment to the retailers. Second challenge the company had faced was to allocate production between Hong Kong and China. 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.

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