Sport Obermeyer Minimum

1680 WordsNov 16, 20127 Pages
Wally Obermeyer is facing a challenge in accurately forecasting the market response and demand for the upcoming season. Historically, the company founder, Klaus Obermeyer, relied minimally on forecast data, and more on intuition and artistic tastes. In comparison, his son Wally prefers to make decisions based on analytical techniques and information gathering. If Wally’s approach proves successful, it can change how Sport Obermeyer approaches its manufacturing processes, secure its position long-term as the middle- to high-end producer of skiwear, increase profits, and better meet the company’s objective of delivering matching collections to retailers at the same time and earlier in the season. Sport Obermeyer has many challenges to…show more content…
If replenishment orders are received sooner, then the cost of shipment is greatly reduced since fewer will require air shipment. Lastly, the company should take an active role in influencing the demand of products it forecasts as being most popular to ensure these items are in high demand. Sport Obermeyer should pressure its sales force to promote these items by providing incentives, such as bonuses, to its personnel. If need be, the company can also provide discounts for large bulk orders to retailers. Lastly, the company should heavily promote these items via advertisements campaigns. Sport Obermeyer needs to be able to keep up with production demand, and in the case the company is overly successful in pushing the styles it predicts to be in highest demand, resulting in Sport Obermeyer needs to be able to meet the production demands generated. The manufacturing facility in China can produce goods much more cheaply than the facility in Hong Kong, but the quality and startup time are inferior to the Hong Kong facility. Obersport, a joint venture of Sport Obermeyer, is responsible for monitoring quality of the raw materials, and coordinating production Sport Obermeyer products in the Far East. Obersport should implement and expand upon its current quality control and quality assurance practices. Sport Obermeyer should pare down the variation in its products to

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