After reading finished the whole case, the key paradox Sport Obermeyer is trying to form here is obvious just match allow with demand. However, because of the kinetics of the fashion ski-ware industry, Obermeyer is facing both ever-changing demand and release, which brings gamey gropingty to this simple match problem.
For the demand, Obermeyer is attempting to predict what styles are passing game to be popular two years later with itsy-bitsy data is available. To make it even off worse, Obermeyers production decisions tremendously depend on this two-year-advance prediction. What better results can we expect? Its nearly impossible to make an accurate work out of the demand, and the prone problems are either stock-outs or markdowns, which indicates the loss of manufacturing cost or sales revenues. Whats more, the large lot sizes required by manufacturers put further restrictions on Obermeyers ability to act to the uncertain demand.
As for the supply, Obermeyer is suffering from long lead times, out-of-pocket to limited supplier capacity. The lead times of most huffy materials can be more than 45 days, some even 90 days or longer which highly cumber Obermeyers production ability.
Obermeyer also has issues in allocating production among factories in Hong Kong and China mainland considering different labor cost and efficiency.
In a word, Obermeyer is trapped in an outdated supply fibril with pressures both backward and forward. Here are some suggestions afterwards detailed discussion of our team, which hopefully can improve the supply chain somehow.
1. come apart forecast with periodic updates. Every problem in this case dates back to the inaccurate forecast of the uncertain demand. The more accurate we predict the demand; the likelihood the supply chain can be improved. With periodic updates to the forecast, old forecast can be corrected and new forecast entrust be more likely to match the actual demand.
2. Better operations with suppliers. More...If you want to get a full essay, golf club it on our website: Orderessay
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