Sport Obermeyer Case Questions
What makes it difficult for Sport Obermeyer to match supply with demand?
What factors and trends are aggravating the situation? You should be
sure to look at both sides of the equation – supply and demand.
Identify the elements of over and under–stocking costs and risks in
this case. What are the key factors that contribute to these costs and
risks
What operational and forecasting changes would you recommend to Wally to
improve performance? There is only so much that can be done with
respect to improving forecasting accuracy – so focus on the
operational side of things. Please be specific with respect to the
problems of matching supply with demand. That is, what can you
recommend that will either improve Sport Obermeyer’s ability to match
supply with demand or reduce the costs associated with mismatches.
Please note that:
It is not sufficient to merely list a set of recommendations (although
this is a good starting point). You must clarify how recommendations
address the major issues/concerns you listed in question one and two.
Recommendations must be reasonable, practical, and viable. In addition,
the value of your recommendation will be measured in terms of its
likelihood for success. Consider your recommendation from the
perspective of employees and management of Sport Obermeyer, as well as
the other supply chain partners.
Often a recommendation (decision) will have some negative consequences
or involve some compromise (e.g. improve service, but at a higher cost).
Solid recommendations will address both positive and negative
consequences and support/justify your recommendation with case facts,
course concepts, and good old logic.
Assume that you are Wally, create the initial order (November) for the
10 ski suits and explain your reasoning. That is, what factors are you
considering when you place your production order in November (e.g. why
make more of some and less of others?). Note that you are also making a
timing decision – half of the 20,000 units need to be produced in the
period between November and March, the remaining 50% after the Las Vegas
Show.
Business Homework Solutions
#37242
Supply Chain Management
I have 4 questions on Sport Obermeyer case study that I need help with. I have attached the questions and the case study (questions can also be seen below - note: one question has 3 parts).
** The case study is in 3 zip files, titled by their page numbers. **
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Sport Obermeyer Case Questions
1. What makes it difficult for Sport Obermeyer to match supply with demand? What factors and trends are aggravating the situation? You should be sure to look at both sides of the equation - supply and demand.
2. Identify the elements of over and under-stocking costs and risks in this case. What are the key factors that contribute to these costs and risks
3. What operational and forecasting changes would you recommend to Wally to improve performance? There is only so much that can be done with respect to improving forecasting accuracy - so focus on the operational side of things. Please be specific with respect to the problems of matching supply with demand. That is, what can you recommend that will either improve Sport Obermeyer's ability to match supply with demand or reduce the costs associated with mismatches. Please note that:
a) It is not sufficient to merely list a set of recommendations (although this is a good starting point). You must clarify how recommendations address the major issues/concerns you listed in question one and two.
b) Recommendations must be reasonable, practical, and viable. In addition, the value of your recommendation will be measured in terms of its likelihood for success. Consider your recommendation from the perspective of employees and management of Sport Obermeyer, as well as the other supply chain partners.
c) Often a recommendation (decision) will have some negative consequences or involve some compromise (e.g. improve service, but at a higher cost). Solid recommendations will address both positive and negative consequences and support/justify your recommendation with case facts, course concepts, and good old logic.
4. Assume that you are Wally, create the initial order (November) for the 10 ski suits and explain your reasoning. That is, what factors are you considering when you place your production order in November (e.g. why make more of some and less of others?). Note that you are also making a timing decision - half of the 20,000 units need to be produced in the period between November and March, the remaining 50% after the Las Vegas Show.
Here is just a sample of what you will find in the solution:
"Both these situations lead to increase in costs, in case of under stocking there is a huge opportunity cost and in case of over stocking there is a loss incurred because of the deep discounts which need to be given, according to one estimate a loss of $9 per unit is incurred because of overstocking."
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