Sport Obermeyer Case Analysis

There were two main(prenominal) driving issues behind our analysis of this fun Obermeyer case: the measurement and understanding of demand from uncertain and disparate forecasts, and the entirelyocation of intersection between factories in Hong Kong and Mainland China (Lo Village, Guangdong). The main challenges facing the company were long lead times, little to no feedback from the market before the beginning production decision (the first real demand signal is at the Las Vegas trade evidence in March) and inaccurate forecasts along with the lost profits that flowerpot result.

The first part of our analysis involved deriving an align policy from the forecasts provided in the sample problem. We solved this problem use simplifying assumptions and then relaxing some of those assumptions. Our initial assumption was that at that place was no b hostelryline order measuring rod. We decided that risk would be minimized by producing the smallest allowable amount during the first production run due to the lack of information. Thus, we calibrated our order quantity formulas to sum to 10,000 units.

We wanted to use a formula that took into history the average forecast as well as the pattern deviation ? in other words, we wanted to account for two the expected demand and the uncertainty.



We began with the formula Q = Average Forecast ? 2* Standard Deviation of the forecasts, since twice the standard deviation was verbalise to approximate the standard deviation of the actual sales. Since this number did non sum to 10,000, we multiplied the standard deviation by a scaling factor, k, and solved for order quantity 10,000 units across all designs. We found k = 1.0607, which gives a quantity of 10,000 with no minimum order quantity.

Next, we had to modify this order policy because designs Stephanie, Isis, and Teri had initial orders at a lower place the minimum order...

If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper