# Sport Obermeyer Case Study

SoccerBoss
Category:
Other
Price: \$15 USD

Question description

Using the sample data given in Exhibit 10, make a recommendation for how many units of each style Wally Obermeyer should order during the initial phase of production.

Assume that all ten styles in the sample problem are made in Hong Kong, and that Obermeyer's initial production commitment must be at least 10,000 units. (Ignore price differences among styles in your initial analysis.)

Hints:

1. You must place orders for at least 50% of the annual demand.
2. There is a limited production capacity (only about 50% of total). The rest is available after the Las Vegas show.
3. The earlier capacity should be used to produce the least risky items.
4. What is risk in this context?
1. Items with high variability in demand (can result in large overstocking).
2. Items that are very expensive (overstocking can be very expensive).
5. For this exercise, we are not considering the price. So, focus only on the variability.
6. Also focus on the minimum production requirement for any item – 600 units.
7. Variability of demand is also called Coefficient of Variation (Std. Deviation/Mean).

(Top Tutor) Daniel C.
(997)
School: Rice University
Studypool has helped 1,244,100 students

1826 tutors are online

### Related Other questions

03/25/2015
12/23/2013
12/16/2013
12/16/2013
12/16/2013
12/16/2013
12/16/2013

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors