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ANASIA PUSPA 29112477 ANANDITA ADE PUTRI 29112476 MUHAMMAD NURHADI WIBOWO 29112326 DENY HERMAWAN
Company Information
Sport Obermeyer is a high-end skiwear design and
merchandising company, headquartered in Aspen, Colorado The products sell in U.S department stores and skishops Most od the products are sourced through Hongkong based company (Obersport), which is a joint venture between Sport Obermeyer and a Hongkong partner Obersport manages supply and production operations in Hongkong and China
Production Planning
Obermeyer produces around 200.000 units/year
cutting and sewing is 30.000 units a month (production capacities at all factories) Minimum production quantity for a style was 1.200 units (China) and 600 units (Hongkong) Wally estimates Obermeyer earned 24% of wholesale price for each unit sold. Unit left unsold were sold at a loss (average 8% of wholesale price)
Production Planning
Assume all styles are made in Hongkong and Wallys initial production commitment at least 10.000 units. How many units of each styles Wally should make? And, assume it all made in China. What is the differences (if any) between the two initial production commintments? (1 and 3)
Units Produced
Differences between production in HK and China are inventory, total cost, operation time and quality
lower than the minimum order (speculation) The total cost in HK is higher than CHN (HKG : 8 styles produced; CHN : only 3 items produced) If we try to calculate the production cost of Entice, Assault, Teri, Electra, Stephanie in HKG, then the rest in CHN, we will have bigger amount than our first calculation
Recommendation (no.4)
To design a intregated information system to improve forecasting system Achievement Less defect product, decreasing shipping cost and cut the lead time
HKG
- High skill workers - Better products quality - Smaller lot sizes - Shorter lead time
CHN
- Average skill workers - Average products quality - Larger lot sizes - Longer lead time
- More expensive
production cost
Recommendation (no.5)
For short term and long term policy, we recommend that products should be produced at HKG plant It will be more efficient and resulted better quality products because with smaller minimum quantities in HKG resulted a higher return even the unit cost is higher