Sport Obermeyer Case Solution
Harvard Business Case Studies Solutions - Assignment Help Sport Obermeyer Ltd. Is a Harvard Business (HBR) Case Study on Technology & Operations, Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.
Problem Diagnosis
This case described the operations at the merchandising and Skiwear Companyand for its supply partner. It allows for the production planning of the short life cycle products with the uncertain demand in the market. This case also allows us to analyze the reduced version of the production-planning problem of the company. The main concern of Wally Obermeyer was to determine an appropriate production commitment for the first half of the projected demand of Obermeyer during the 1993-1994 seasons.
Along with this, Wally also had to make a complete production decision by deciding that which styles should be made in Hong Kong and which styles would be better to be made in China. In addition, the material flows and the information provided in the case will also guide us to make recommendations to the company regarding the operational improvements and the decision of the sourcing of the products between China and Hong Kong.
We will write a custom sample essay on Sport Obermeyer Case Study specifically for you FOR ONLY $16.38 $13.90 /page Not only how many to produce from each item is the big decision for Obermeyer, but also when to produce each as not all style can be made for the beginning of the season. Hammond, Janice H., and Ananth Raman. 'Sport Obermeyer Ltd.' Harvard Business School Case 695-022, October 1994. (Revised August 2006.). Mar 22, 2015 Sport Obermeyer Case Study 1. Sport Obermeyer Case Study Presented By: Gourav Anvekar Ranjan Melanta Jerrin Mathew Kunal Savlani 2. Sport Obermeyer currently has a problem with matching supply with demand. Right as you begin to read the case-study, you notice how far in advance they must predict what styles are going to be popular and how much to produce.
Case Analysis
The main analysis needs to be performed on the forecast methods of the company to detect the inaccurate forecast mechanisms and then the after effects need to be analyzed such as the excess merchandise had to be sold at deep discounts and the company might not be able to sell the most popular items during the full season and thus it would result in huge losses for the company. Therefore, we first need to determine the production plan for Sport Obermeyer during the initial phase of production, measure the risk of ordering policy and implement ordering policy in China to make reasonable comparison and recommendations.
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. Assume that all of the 10 styles in the sample problem are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. Ignore price differences among styles in your initial analysis.
The average forecast value and the standard deviation of the different styles of the Parkas of Women have been provided in Table 2-20. The above question asks us to compute the economic order quantity for each of the individual type of the parkas. Economic order quantity is the optimum order quantity, which is required to be held at a minimum by a company so that it could reduce its inventory costs to a minimum level. This quantity model would target the variable costs and determine the optimum quantity for us at which the total variable cost would be minimized for the company’s production. However, in this case the EOQ for the company would be the production order quantity for each individual type of the Parka, given that the total of all of these EOQs should be 10,000 units.
For computing the EOQ, we need to find out the corresponding service level for the sample provided. 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. These computations are shown in the excel spreadsheet and in the appendices in exhibit 1. The service level has been calculated to be 0.75 or 75%. Based on this service level, the z value has been determined from the z table, which is 0.645. The formula which we have used here to compute the EOQ is mean+ (z-value*SD). Using this formula, the individual EOQs have been computed and the total EOQ for the forecasted sample of 20,000 units. The price differences between different styles have been ignored for this calculation.
Question 2
Can you come up with a measure of risk associated with your ordering policy? This measure should be quantifiable.
One of the best measures of the risk associated with the ordering policy in this case would be Coefficient of Variation (CV). CV is the ratio of the standard deviation to the expected mean. It shows us the volatility and the variation in the data per unit of mean. However, in the context of this case the CV would be defined as the volatility of each of the types of different styles of Parkas per unit of that style. It would determine the variability of the demand or the ordering policy risk. The higher the volatility, the more certain and accurate the company would have to be to determine the demand for the coming seasons of 1993-1994................................................
Sports Obermeyer Case Solution
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