Case study introduction
This case describes the forecasting, planning and production processes of a global skiwear supply channel. Sport Obermeyer Ltd. is a high-end fashion design and merchandising company that sells its products through U.S. department stores and ski shops. Although the company has a global supply network, most of its critical outerwear products are sourced through a Hong Kong based joint venture company, Obersport. It has to forecast the demand of its ski parkas almost a year in advance in a field where the fashions change quite fast. It leads to some complex decision making as the manufacturing lead time is very long. The supply chain spreads over many countries, some of the suppliers have very long lead times and the forecasts the company makes at the beginning are less accurate. The case highlights the challenges companies face when planning production for short-life cycle products, operational changes to reduce cost of stockouts and excess stock due to mismatched supply and demand, and other coordination issues in supply chains.
Answer the following questions:
- What were the main challenges facing Sport Obermeyer? (Be sure to provide specific data as appropriate)
- What factors constrain Sport Obermeyer’s production planning?
- What operational changes would you recommend? Why would these changes add value?
The case write-up should not exceed four-pages, double space, font size 12 Times Roman or equivalent, excluding exhibits (note that exhibits should not exceed two pages). The write-up should be professionally done, with arguments or points made in a logical flow. You can use prose or bullet-point format in your write-up, but key arguments should be articulated clearly and concisely. Submit your completed assignment via the Turnitin drop box located in the Assignments area.