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Case Analysis
Background Information
It sells its products through U.S. department stores and ski shops.
Although the company has a global supply network, most of its critical
products are sourced through Hong Kong-based company, Obersport.
Obersport is a joint venture between Sport Obermeyer and a Hong Kong
partner.
Obersport manages supply and production operations in Hong Kong and
China.
Time Line
Production Planning
Production Planning
Production Planning
10 Styles of Womens Parkas
Production Planning
Production Planning
No Minimum Order Quantities
Production Planning
Production Planning
With Minimum Order Quantities
Production Planning
With Minimum Order Quantities
Operational Changes to
Improve Performance
Increasing Reactive
Production Capacity
How can we increase reactive capacity?
Operational Changes:
Discussion Questions
We have identified a number of constraints
that make the problem difficult. Which of
these would you address?
Would you want to make all production after
the Las Vegas show?
Observe: Decreasing production minimum
or increasing reactive capacity have
diminishing marginal returns.
Accurate Response
Develop a probabilistic forecast
Assess markdown and stockout costs
Determine appropriate production quantities
Coordination Issues