Sport Obermeyer Case Study

Published: 2021-06-29 06:56:01
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Category: Business

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CASE STUDY
Sport Obermeyer, Ltd.

Situation
Sports Obermeyer, Ltd. is a fashion skiwear manufacturer that produces broad line of stylish ski apparel with innovative design and features. The company competes on price/value relationship targeting the middle to high end of the ski market. With the growth of the market in recent years, it has been increasingly challenging to predict the demand, worker levels and productivity levels. This resulted in inability to accurately forecast market sales which caused surplus of inventory of certain products while selling out in others - not maximizing revenue from the existing potential market. In addition, the inflexibility of production capabilities by its sole supplier, Obersport, made it difficult for the production to meet the demands of the market. Vice President Willy Obermeyer has to address these issues by improving on the forecasting model, allocating orders accordingly to the capabilities of the factories, and eliminating deficiencies in acquirement of raw materials.

Issues
Sports Obermeyer, Ltd. has been experiencing the following issues:
1. The company faces excess inventory of unpopular products and sell-out of popular products. The flawed demand predictions lead to inefficient production amounts.
2. The coordination of production between the two factories has difficulties meeting the demand of the market due to differences in capacities and labour costs.
3. The company has to compete on speed for order quantities to be shipped overseas to Obermeyer warehouses due to quota restrictions that are imposed by the U.S. government.

Analysis
Refer to attached exhibits 1 to 3.

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