Case Report — Sport Obermeyer [ARR]
Sport Obermeyer Report
Executive Summary
The two problems for Sport Obermeyer are (1. How much skiwear to produce; The company
has to accurately forecast the demand for each style for the next year and place the order for
raw materials before the Las Vegas show and actual selling season. Inaccurate forecasts will
lead to considerable loss of income and (2. Where to produce the products; Obermeyer needs
to efficiently allocate the orders between Hong Kong and GuangDong, China to minimize the
total land cost and fulfill the demand.
Initial Production Quantity
Since all the styles are made in Hong Kong at this moment, Obermeyer has to order more than
600 units for each style.
Based on the above constraint, we decided to give priority to those styles with sales forecast
below 1200 units. Which means Obermeyer needs to order enough of them at once in the
initial order because they cannot split the order.
Operational Changes
