Supply and Demand

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Category: Business and Industry

Date Submitted: 11/18/2012 09:27 AM

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Sport Obermeyer


Executive Summary

The objective of this document is to discuss the theory of matching supply and demand with cycle time reduction for Sport Obermeyer. Sport Obermeyer is a leading manufacturer of fashion ski apparel for both adults and children. Offering an extensive range of fashion ski apparel; parkas are considered the main element and other garments were fashioned to match the parkas’ style and color. With a peak retail season of two months and uncertain demand; Sport Obermeyer is experiencing manufacturing constraints such as forecasting and long lead times due to an outdated supply chain. The competition is steering the market, and there is a need to increase the variety through design, functionality and color of our products. Forecasting in this shifting market is a significant challenge, which when is inaccurate costs the company disposal of inventory and lost sales revenues, which potentially could reduce market share.   Current suppliers are at capacity under their current structure causing Obermeyer’s long lead time. Creating new tactical and strategic improvements would demonstrate direct benefits in forecasting, supply and demand requirements while reducing the cycle time to improve success for Sport Obermeyer.

Founded by Klaus Obermeyer; a German immigrant to Aspen, Colorado in 1947. While being employed as a ski instructor; Klaus applied his insight and innovation to ski apparel developed the first waterproof and breathable fabrics, with a fashion-savvy flair. In 1961, the first Sport Obermeyer factory warehouse opened in Aspen, and the innovations continued. Obermeyer’s competitive edge focused on excellent price with a functional and stylish twist targeting middle to high end skiers. Sport Obermeyer caters to specialty ski retails stores and urban ski resorts; with a peak season of December to January. By 1992 estimated sales were $32.8 million; holding 45% market share in...