# Sports Obermeyer

1411 Words6 Pages
Executive Summary

There were multiple issues weighing heavily on the mind Wally, a VP at Sports Obermeyer, in November of 1992. Sports Obermeyer, a successful manufacturer of ski apparel was having trouble planning the manufacturing levels of its various skiwear items for 1993-94 based on whatever scant information it had on the end customers’ likes and dislikes. Waiting to make these decisions till after the Las Vegas trade show, the one event which would give reliable retailer feedback, would prove very costly given the extremely long lead times of it’s suppliers in Hong Kong and China. In the past, Sports Obermeyer had relied on a group of company managers, called the “buying committee” to make a consensus forecast on the demand of
We also need to make sure that Obermeyer honors the minimum order quantity required by the Hong Kong’s supplier. We can multiply the recommended optimal ordering level for each style by (20000/26360) thus ensuring that the total sum will exceed 20000 but which may not maximize profits.

rec prod level constant multi profit
4767.707092 3617.367928 63376.29
2983.65303 2263.765489 48897.33
2694.313228 2044.236794 84876.71
4708.381537 3572.356278 79734.99
3323.238712 2521.416878 89560.73
1692.546916 1284.173883 24656.14
1278.702023 970.18034 25612.76
1477.720379 1121.180098 26639.24
1613.96119 1224.549103 36148.69
19.865258 1380.773208 44074.28 26360.08936 20000 523577.2

The second column in the table above is obtained by multiplying the first column by 20000/26360.

Question 3

What operational changes would you recommend to Wally to improve performance?

Wally is trying his best to setup a quick response system based on whatever little data he has based on past numbers and experience of his production managers and suppliers. He does not have the luxury of looking at retailer feedback in a timely fashion and the facts that the peak season for the line of business he’s in and that the supplier lead times are extremely long do not help him much. Despite some very aggressive moves to reduce lead times and to have a better forecasting model, Obermeyer has been unable to deal with the