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sport obermeyer
1. What should be the basis of Operations Planning (Long term-2 yrs planning and short term- one month planning)?

Long term Planning
The basis of the operations planning should be as follows:
To decide the structure of supply chain
In-house function, production, location and warehouse
Modes of transportation to be used
Short term Planning
Demand pattern, orders from the retailers, current market conditions, trending items, transportation routes and inventory stocks
Short term planning for sourcing: Hong Kong
Because of the following reasons:
The advantages of manufacturing of Ski in Hong Kong are
It is faster to manufacture
It is more flexible
High/ Reliable quality

But the areas of the concern for producing in Hong Kong are:
Smaller lot size
High labor cost
Hence for all these reasons, short term planning should be done in the Hong Kong
Long term planning for sourcing: China
The advantages of manufacturing of Ski in Hong Kong are
Lower labor cost
Larger lot size

But the areas of the concern for producing in China are:
Quality and reliability
Slower
Less Flexible
Hence for all these reasons, Long term planning should be done in the China

2. Study Exhibiit 10. How Wally should do Forecasting so that error is minimum?

1. Improve the demand forecast made internally by the buying committee in November just before Speculative Production
(Instead of using juts a simple average of the individual forecasts made by Laura, Carolyn, Greg, Wendy, tom, Wally use a weighted average with the weights reflecting past accuracy.)

2. Obtain market feedback earlier than Las Vegas, thereby converting some speculative production into reactive production
Sport Obermeyer can invite selected retailers to come in January to aspen for an all-expenses paid” early order weekend”, when there is time for a “sneak preview” of the new line, some recreational skiing and socializing and then the early placement of orders at the discount.

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