Supply Chain Management Analysis of Sport Obermeyer

Sport Obermeyer, an Aspen-based skiwear manufacturer, operates in an intricate global supply chain, facing unique challenges associated with forecasting demand and managing inventory. Navigating the sportswear market, which is marked by rapid trend changes and seasonal fluctuations, adds an additional layer of complexity. This study examines the operational challenges and inventory management of Sport Obermeyer. We delve into the company’s supply chain dynamics, identifying complexities like uncertain demand and long lead times. The Economic Order Quantity (EOQ) method is analyzed for inventory management, but limitations are recognized due to uncertainty in defining key parameters. The importance of service levels in decision-making is highlighted, with a revised EOQ approach proposed. We suggest a production allocation strategy between Hong Kong and China, using the coefficient of variation and z-scores to assess risk and excess inventory. Four key recommendations are made - strategic production allocation, adoption of Just-In-Time (JIT) production, implementation of reliable demand forecasting, and enhancement of employee training. The study acknowledges inherent limitations and future influences including climate change and the COVID-19 pandemic on the industry. The study underlines the need for strategic preparedness for unexpected scenarios to ensure Sport Obermeyer’s sustained success.