Sport Obermeyer Case Report
Table of Contents
Executive summary 3
Issues Identification and Root Cause Analysis 8
Alternatives and Options 9
Implementation ...view middle of the document...
The other major factor is where to produce between China and Hong Kong and production quantities for each clothing line.
We would split production run into two to minimize the effect of forecast mismatch.
Firstly, the predictive forecast would be used to produce the major requirement using the available data. The parkas to produce are the low risk ones: Seduced, Assault, Entice, Gail and Anita. If sales are not made as forecasted, we will incur minimum loss compared to other styles.
Secondly, we would use reactive forecast after the Las Vegas show to produce the balance of the remaining stocks of parkas using; the Isis, Electra, Teri, Daphne, and Stephanie. There will be little loss of sales and unsold inventory since we will be matching demand with supply at this time.
Sport Obermeyer was started in 1947 in Aspen, Colorado when Klaus Obermeyer wanted to make available in the United States: durable, high-performance ski clothing for his students that he has been sourcing from his native Germany before then.
Over the years, Sport Obermeyer developed into a preeminent competitor in the United States skiwear market: estimated sales in 1992 were $32.8 million. The company held a commanding 455 share of the children’s skiwear and 11% of the adult skiwear market. Obermeyer offers a broad line of fashion ski apparel, including parkas, vests, ski suits, shells, ski pants, sweaters, turtlenecks, and accessories. Parkas are considered the most critical design component of a collection; the other garments were fashioned to match the parkas’ style and color. Parkas are considered the most critical design component of a collection; the other garments are fashioned to match their color and style. Columbia Sportswear was a lower-price, high-volume-per-style competitor whose sales had increased rapidly during the previous three years. By 1992, Columbia had captured about 23% of the adult ski-jacket market.
The products were offered in five different genders: men’s, women’s, boys’, girls’, and preschoolers’. The company segments each “gender” market according to price, type of skier, and how “fashion-forward” the market was. Within each “gender”, numerous styles are offered, each in several colors and a range of sizes. Each segment offers excellent price and valued relationship, where value was defined as both functionality and style, and targeted the middle-to high-end of the skiwear market.
In 1992, Sport Obermeyer would start to make commitment for producing its 1993-1994 line of fashion skiwear with forecasts based on past sales trend, speculation and intuition. The inaccuracies in forecasts would lead to the company running out of stocks on most popular wares while unsold excess merchandise would be sold at discounted rates. The company sometimes barter stocks with service to clear out unsold skiwear.
In 1985, Obersport Ltd was established by Klaus Obermeyer and Raymond Tse. This joint venture was used to coordinate production...