Sport Obermeyer Ltd. Case Study Solution
a) Supply chain management:
Supply chain management of Obermeyer is quite challenging because the products they offer are produced in different complex levels and most of the tasks can only be performed after the production quantities planned are known, as the situation shows that Obermeyer finds it difficult to predict the forecast demand. Moreover, the products are produced in different locations in China and Hong Kong, leading to further complexity. For example Chinese counterparts work 50% slower than Hong Kong’s workforce. Hong Kong’s workers have the ability to upgrade production quicker as compared to Chinese workers that enable them to manufacture efficiently in smaller units. Involving different locations with differently skilled labour, completing a product at various stages is what makes the supply chain management for Obermeyer challenging.
b) Demand forecasting process:
More strong competition and strong product variety in the market has made the precise predictions increasingly difficult. In this case, owner of the company and his son who is MBA graduate exercise different management approaches, the former takes a more intuitive style which is heavily based on his industrial experience and the son relies more on formal data and analytical techniques. Peak sales season for Obermeyer is December and January and retailers require delivery before the start of the season. As the designs are finalized, samples are produced with the fabric which is used in final manufacturing process. Representatives of Sales force team show that during March in week-long Las Vegas retailers were provided samples. Obermeyer usually receives the orders comprising an annual volume of around 80%was showing that the information in hand with respect to the following year. It can forecast accurately its total demand. After completion of the forecast, sampling and final production take place.
Sport Obermeyer Ltd. Harvard Case Solution & Analysis
c) Capacity constraints:
Company’s product passes through different steps such as sewing and cutting, the workers’ operational allocation workers differs from one manufacturing unit to the other and it depends upon the skills required and cross-training of workers. Therefore, the Hong Kong’s workers work quicker as compared to Chinese. It shows that on average Chinese operations require around 40 workers whereas, Hong Kong operations’ require only 10 workers for the parka Line. Hence, actual output in the required time period for the Sewer of Hong Kong takes around time period which is twice as compared to the Chinese. There is comparatively less quality, high repair rate and less conscious cleanliness in China. Moreover, sewing and cutting are available maximum capacity for the company is approx. 30,000 units a month...............
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