PAPER

CASE STUDY:
SPORT OBERMEYER

GROUP OF SUPPLY CHAIN DESIGN

1.
2.
3.
4.
5.

DYAN SAPUTRA - 291130088

FARIEZA QORIYANA - 29113020
HALIFAH HAMZAH - 29113069
KUSPRATAMA - 291130021
WILMAN NOVIYANDI - 29113054

Master of Business Administration

School of Business and Management ITB
2014

COMPANY BACKGROUND

Sport Obermeyer, Ltd. Was founded by Kisus Obermeyer to provide U.S. skiers with
the same protective and stylish clothing and equipment available in Germany. Over
the years, Sport Obermeyer developed into a preeminent competitor in the U.S.
skiwear market: estimated sales in 1992 were $32.8 million. The company held a
commanding 45% share of the childrens skiwear market and 11% share of the
adult skiwear market.
Product and Segmentation:
Mens Collection
Boys Collection
Womens Collection
Girls Collection

Questions:
1. Using the sample data given in Table 2-20 , make a recommend for how many
units of each style Wally should make during the initial phase of production.
Assume that all of 10 styles in the sample problem are made in Hong Kong
and that Wallys initial production commitment must be at least 10,000 units.
Ignore price differences among styles in your initial analysis?
2. Can you come up a measure of risk associated with your ordering policy? This
measure should be quantifiable.
3. Repeat your methodology and assume now that all 10 styles are made in
China. What is the difference (If any) between the two initial production
commitments?
4. What operational changes would you recomended to wally to improve
performance?
5. How should Wally think (both short term and long term) about sourcing in
Hongkong versus China? What kind of sourcing policy do you recommend?

Answer:
Number 1 & 3
Comparison units of each style when produced in Hongkong and China

The differences between production in HK and China

Number 2.

In this case, the strategy takes into account demand uncertainty and expected
demand. we assessing
forecast certainty based on historical data: Past forecast error & Variability of
demand
Forecasts are always uncertain

The deviation in views is good estimator of forecast reliability.

Table of Standard deviation vs. Coefficient of variation

Number 4
The recomended of operational changes to improve performance is :

reducing number of styles handled and to predict customer demand for

individual style and also create promotion strategy to persuade retailers to

order.
Increasing production Quality of China to be closed to Hong Kong.
Reduce lead time of production especially the preparation of raw materials.

Increase bargaining power with suppliers by ordering via big supplier that

can commit on timeline.

Increase distribution channel to a country that have different period of

product usage.
Collect the data backward and analyze the demand of the show in Vegas
and compare with actual purchases.

Number 5
According to the comparison of operation in Hongkong and China, Hongkong is more
productive and flexible than China. The more advantages of China than Hongkong is
about extreme low labor cost. In production, Hongkong have a higher productivity,
more flexible worker, better quality and also smaller minimum order size. in other
hand, China just have a lower labor cost and easier to find workforce. so both of the
country should be concern to improved the production. In China they are should be
concern about less flexibility, higher repair rate, larger minimum order size. The
concern of improvement in Hongkong is about higher labor cost and also many
young people prefer work in office. From the above statement, Wally should think if
for short term, they can order to Hongkong and for long term should be order to
China.