case study Sport Obermeyer

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case study Sport Obermeyer
????(2) Case Study- Sport Obermeyer
Sport Obermeyer
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Outline

• Part ISport Obermeyer
• Part II Student present

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What are the constraints of the supply chain?
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Ans)
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What is the typical time line at Obermeyer?
Manufacturing capacity
9/92
10/92
12/92
1/93
2/93
7/93
5/93
6/93
4/93
11/92
3/93
8/93
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Which products are safer to produce early
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Ans)
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Outline

• Part ISport Obermeyer
• Part II Student present

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???

• ????
• ???????????
• ????
• 1)?????????
• 2) ????10,000?

?????_a)??????
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• ??1)??????(stockout)????
• 2)?????
• ?????,??????????a???
• ???????????(1-a)????
• ???? Xiµi-Zasi

?????_a)??????
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?? ????? ????? ?????? ?????
Gail 1,017 388 X11,017-388Za 606
Isis 1,042 646 X21,042-646Za 357
Entice 1,358 496 X31,358-496Za 832
Assault 2,525 680 X42,525-680Za 1,804
Teri 1,100 762 X51,100-762Za 292
Electra 2,150 807 X62,150-807Za 1,295
Stephanie 1,113 1,048 X71,113-1,048Za 2
Seduced 4,017 1,113 X84,017-1,113Za 2,837
Anita 3,296 2,094 X93,296-2,094Za 1,076
Daphne 2,383 1,394 X102,383-1,394Za 905
?? 20,000 9,428 ?10,000?? 10,006

• ?SXi20,000-9,428Za?10,000
• ?Za?1.06,a0.1445,??????14.45?

?????_a)??????
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???

• ????
• ???????????
• ????
• 1)???????600 ?
• 2) ????10,000?

?????_b)??????
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• ??
• Type 1 parka (µi gt 1200 ), safety
  factor (µi 1200)/si
• Type 2 parka (µi lt 600 ), safety
  factor (600µi )/si
• Type 3 parka (600lt µi lt 1200 ), safety
  factor 0

??? ??? Type1???? safety factor??????????? ???Xiµi-Zasi
??? ??? Type2???? safety factor????????????? ???600 (????)
??? ??? Type3 ?Type3??????? ???600? Max(600,Xiµi-Zasi)
??? ???
?????_b)??????
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?? ???? (?) ????? Safety Factor Z (X600) ??????
Seduced 4,017 1,113 2.53 X1µi-Zasi
Assault 2,525 680 1.95 X2µi-Zasi
Electra 2,150 807 1.18 X3µi-Zasi
Anita 3,296 2,094 1.00 X4µi-Zasi
Daphne 2,383 1,394 0.85 X5µi-Zasi
Entice 1,358 496 0.32 X6µi-Zasi
Gail 1,017 388 0.00 1.08 X7?
Isis 1,042 646 0.00 0.68 X8?
Teri 1,100 762 0.00 0.66 X9?
Stephanie 1,113 1,048 0.00 0.49 X10?
?? 20,001 ?10,000??
?????_b)??????
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• ??????Type 3
• Xi µi-Zasi ,( i1?26 )
• YiMax(600, µi-Zasi)

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?? ???? (?) ????? Safety Factor Z (X600) ??????
Seduced 4,017 1,113 2.53 X1µi-Zasi
Assault 2,525 680 1.95 X2µi-Zasi
Electra 2,150 807 1.18 X3µi-Zasi
Anita 3,296 2,094 1.00 X4µi-Zasi
Daphne 2,383 1,394 0.85 X5µi-Zasi
Entice 1,358 496 0.32 X6µi-Zasi
Gail 1,017 388 0.00 1.08 X7?
Isis 1,042 646 0.00 0.68 X8?
Teri 1,100 762 0.00 0.66 X9?
Stephanie 1,113 1,048 0.00 0.49 X10?
?? 20,001 ?10,000??
?????_b)??????
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• ??????Type 3
• Xi µi-Zasi ,( i1?26 )
• YiMax(600, µi-Zasi)

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??????,Za1.234
?? ????(??) ????? ?????? ??????
Seduced 4,017 1,113 X14,017-1,113Za 2,644
Assault 2,525 680 X22,525-680Za 1,686
Electra 2,150 807 X32,150-807Za 1,154
Anita 3,296 2,094 X43,296-2,094Za 712
Daphne 2,383 1,394 X52,383-1,394Za 663
Entice 1,358 496 X61,358-496Za 746
Gail 1,017 388 X7600 600
Isis 1,042 646 X8600 600
Teri 1,100 762 X9600 600
Stephanie 1,113 1,048 X10600 600
?? 20,001 10,005
?????_b)??????
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? ?

• ?????????
• ??????????????????Obermeyer?????????????????
• ????????????reactive planning,?????,???????????

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How do you plan the initial production without
considering minimum order size?

• Assume normal distribution for each styles
  forecast
• Produce up to the same demand percentile for each
  style
• Stylei µi ksi (vary k so that total is around
  10000)

Style µi si µi 1.06si
Seduced 4017 1113 2837
Assault 2525 680 1804
Electra 2150 807 1295
Anita 3296 2094 1076
Daphne 2383 1394 905
Entice 1358 496 832
Gail 1017 388 606
Isis 1042 646 357
Teri 1100 762 292
Stephanie 1113 1048 2
Total 20001 10008
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safety factor-I

• ??
• Type 1 parka (µi gt 1200 ), safety
  factor (µi 1200)/si
• Type 2 parka (µi lt 600 ), safety
  factor (600µi )/si
• Type 3 parka (600lt µi lt 1200 ), safety
  factor 0

??? ??? Type1???? safety factor??????????? ???Xiµi-Zasi
??? ??? Type2???? safety factor????????????? ???600 (????)
??? ??? Type3 ?Type3??????? ???600? Max(600,Xiµi-Zasi)
??? ???
?????_b)??????
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safety factor-II
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safety factor-III
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safety factor-IV
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How do you plan the initial production
considering minimum order size of 600?

• Large production minimum order size forces us to
  make either many parkas of a given style, or
  none. Thus our ability to finely tune our supply
  of each parka is reduced significantly by the
  minimum order size.
• Define safety factor
• Type1 parka (µi gt 1200), safety factor (µi -
  1200)/si
• Type2 parka (µi lt 600), safety factor (600 -
  µi)/si
• Type3 parka (600 ltµi lt 1200), safety factor 0

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The initial production plan

• Production Quantity Max (600, µi 600 SFmin
  si)

Style µi si Safety Factor Production quantity
Seduced 4017 1113 2.53 3062
Assault 2525 680 1.95 1708
Electra 2150 807 1.18 1293
Anita 3296 2094 1.00 2029
Daphne 2383 1394 0.85 1339
Entice 1358 496 0.32 600
Total 10031
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The impact of minimum order size
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The benefits of increasing reactive production
capacity
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How to increase reactive capacity?
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Ans)
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How to increase reactive capacity?

• Increase reactive capacity only
• Develop a workforce willing to work longer hours
  during peak season (workers in Lo Village work
  nearly 50 more hours)
• Use subcontractor during peak season
• Increase total capacity
• Increase the total (year-round) capacity
• Manufacture complementary garments such as swim
  suits
• Reduce raw material and/or manufacturing lead
  times
• Short production lead time ? more production
  units
• Raw material lead time is almost three months now
• Stock inventory of long-lead time materials
• Increase component commonality (e.g., zippers)
• Obtain market information earlier
• Offer discounts to early orders
• Choose early-order retailers form different
  segments and update its demand forecast
  accordingly

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How to increase reactive capacity?
a. Base Case
Speculative Production Capacity
Original Reactive Capacity
Material LT
Prodn LT
New Info
Note The shaded areas indicate the time at which
production begins. Production is completed at an
addition amount of time (the production lead
time) has elapsed
b. Increase Total Capacity
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How to increase reactive capacity?
c. Decrease Lead Times
Material LT
Prodn LT
New Info
d. Obtain Informational Earlier
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What are the roles of Sport Obermeyer and
Obersport?
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What are the roles of Sport Obermeyer and
Obersport?
Supply chain
Obersport
Sport Obermeyer
Market
Obersport Sport Obermeyer
Coordinate supply side Coordinate market side
Tackle demand Monitor fashion trend Monitor retailers willingness and abilities to pay Monitor the health of the US economy Sign contract with retailers Offer discounts

• Find component suppliers
• Build relationship with the suppliers
• Find qualified factories
• Monitor the quality and schedule of the produced
  products

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What are the comparisons of operations in HK and
China?
HK China
Flexible hours Low High
Labor cost High Low
Worker productivity High Low
Minimum order size 600 1200
Quality High Low
Challenges Wage rate high Low unemployment Less quality Training
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1, 4, 7, 8, 29, 30, 34 ????????? ??????WIKIPEDIA (http//zh.wikipedia.org/wiki/E59388E4BD9BE5A4A7E5ADA6 ),????2012/1/2,???????46?50?52?65??????
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