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Sport Obermeyer Case

In: Business and Management

Submitted By yashika
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RECOMMENDATION #1. Improve the demand forecasts made internally by the Buying Committee in November just before Speculative Production. Instead of using just a simple average of the individual forecasts made by Laura, Carolyn, Greg, Wendy, Tom, & Wally, use a weighted average, with the weights reflecting past accuracy.
RECOMMENDATION #2. Obtain market feedback earlier 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 and resort retailers.
RECOMMENDATION #3. Decrease lead times for both raw materials and finished goods, thereby allowing more time to utilize existing capacity.
Since the business strategy should emphasize Dependability more than Cost, lead-times can be reduced using some or all of the following methods:
Choose suppliers of raw materials more on the basis of D than C.
Expedite orders through information sharing with suppliers.
Expedite shipments using faster (but more expensive) shippers.
Establish some local (but more expensive) production capacity for “last minute” production.
Other ways to reduce lead times include:
From the items with long lead times, increase the amount of “safety stock” inventory for those items that are inexpensive (e.g., buttons) and/or shared by many parkas (e.g., black fabric).
Simplify the parkas’ designs so that they can share as many components as possible. For example, are 100,000 varieties of zippers really necessary?
RECOMMENDATION #4. Increase production…...

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