MEMO To: Wally Obermeyer From: Team 313 Date: May 20, 2018 Subject: Production Planning Sport Obermeyer is a skiwear apparel manufacturer. It became a leading company in the U.S. Skiwear market with impressive 45% of children's skiwear and 11% share of adult skiwear market. Its products are offered in different genders. Obermeyer offers an excellent price/value relationship, targeting the middle to high end of the skiwear market. Its product strategy relies on several logistics-related activities, matching the collections of products to retailers at the same time, and including on-time delivery of its products to its retailers Recently, Columbia Sportswear, low margin high volume competitor, has grown over the last 3 years, capturing 23% of the adult ski-jacket market. So, in order to maintain its market share, the company needs to achieve a sustainable growth. The purpose of this memo is to address the issues regarding the firms' commitments for producing its 1993-1994 line of fashion skiwear and rectify the issues with first phase production. Issues: …show more content…
This resulted in the occurrence of two scenarios, both resulting in a loss to the company. On one hand, the company was saddled with excess merchandise for those styles and colors that retailers had not purchased, resulting in the selling of those at deep discounts below their manufactured cost. On the other hand, the demand of most popular items was not met by the company. A lot of income was lost each year due to companies companies' inability to predict which products would-become best