Sport Obermeyer, Ltd Case Study Solution
Since Hong Kong does have a minimum production requirement of 600 units for each style, how many units of each of the 10 styles of Women’s parka would you order as part of your first production lot size of 10,000 units?
The safety factor values are calculated for all the styles using the formula (µ - 2m)/σ. The 10 styles are sorted in descending orders, which means from largest to smallest. The safest safety product is 2.53 of the Seduced Style whereas the lowest safety product is -0.47 of the Gail Style. It shows that the safest product is the Seduced styled product and the least safety product is the Gailed styled product. Shortly, producing 1 style product does not fulfil the requirement and objective of producing 10000 units.
With the goal of producing the 10000 units; the company could produce more quantities and more styles. This time, the production quantity for the Seduced style iscalculated by using the similar formula, but the safety product of Assault is taken on the basis that safety factor calls for least safe style in the number of style.The production of two styles would add up to 1847 units, which again, does not fulfil the requirement of producing 10000 units due to which the company could go with producing more styles. If the company produces 6 styles; the total combined units of the 6 styles would be 9772, which is close to the objective of 10000 units......................................
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