Case study analysis on ‘Sport Obermeyer’ Sport Obermeyer is a US based manufacturer of fashion ski apparel industry, Parkas were their centrepiece. ANALYSIS 1. Inaccurate forecast of retailer’s demand Due to incorrect forecast the company is held with unsold merchandise which even the retailers wouldn’t purchase, and later the company sold those products at deep discounts which were often below their manufacturing cost, this caused bull whip effect. This resulted loss of sales revenue and
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Introduction Sport Obermeyer is a leader in fashion skiwear manufacturing. Skiwear manufacturing is a competitive field with distinct challenges. Skiwear market is just four months long but the design and production process takes over 16 months to complete. Accurate estimates of demand become available only after a year into design and production cycle. The Company also faces long lead times from textile and accessories suppliers. This forces the company to accurately predict the demand early accurately
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SPORT OBREMEYER Sport Obermeyer designs and sells high-end skiwear from Colorado. Their products are sold in US departmental stores and specialty ski shops. Most of its production is carried out in honk Kong and china by its partner, Obersport. Annual production capacity is approximately 200,000 units. The minimum production quantity in Hong Kong is 600 units and 1200 units in china. They earn a 24% profit on whole sale price on every product and losses 8% on discounted sales. There are many challenges
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Sport Obermeyer, Ltd. Business Case Report Sport Obermeyer, Ltd. Business Case Report Table of Contents Executive Summary 1 Issue Identification 2 Environmental and Root Cause Analysis 3 Alternatives & Options 4 Recommendations 5 Implementation 6 Monitor and Control 7 Sport Obermeyer, Ltd. Business Case Report Executive Summary Each year we are challenged with matching supply and demand
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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. He believed more functional ski apparel could be produced and then took the initiative to design more durable, high performance clothing equipment. Klaus’ design of the ski break was the innovation that led to the company becoming a
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SPORTS OBERMEYER Introduction Sports Obermeyer Ltd. is a successful ski apparel company that needs to address logistics related decisions. The company was founded in 1947, by Klaus Obermeyer and it has continued to excel through latest trend spotting resulting in continuous product innovation. Currently the demand forecasting for the products is done by considering the average sales forecasts given by internal members. Postponement techniques were being used (by keeping large amount of greige
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Analysis of Issues To address the two major issues, the application will be illustrated using the current problem faced by the company in deciding what to send to the manufactures for the first production run for 10 styles of women’s parkas. The forecast by the committee presents the estimate by 6 members on the potential demand which totals up to 20,000 parkas. The requirement for the first production order is 10,000parkas. First, the quantity for each style needs to be decided upon. The deciding
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The Sample Problem Objective: To prepare a production schedule according to demand forecasts made by the design committee. Constraints: 1. Minimum order quantity at: Hong Kong – 600 China -1200 2. Total order quantity (1st schedule): 10000 3. Almost Half of production to be done each in China and Hong Kong Expected Safe Margin of Production: Average Forecast – 2* standard Deviation |Style |Price |Average |Std Dev |2 * Std Dev |Safe
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than Las Vegas, thereby converting some Speculative Production to Reactive Production. Sport Obermeyer can invite selected retailers to come in January to Aspen for an all-expenses-paid “Early Order Weekend”, where there is time for a”sneak preview” of the new line, some recreational skiing and socializing, and then the early placement of orders at a discount. To maximize the value of the market feedback, Sport Obermeyer’s “guest list” should include both large and small retailers and both urban
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Sport Obermeyer is an innovative, high end, ski Wear Company created by Klaus Obermeyer to enable skiers to be comfortable in quality ski wear that is functional and fashionable. The Ski wear industry is a competitive marketplace. Key industry leaders such as The North Face also targeting high-end outdoor savvy consumers and Columbia Sportswear a company which offer supplementary lower-priced, high-volume styles also hold a substantial percent of the market. Sport Obermeyer operations
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