1- What makes supply chain management at Sport Obermeyer so challenging?
The biggest challenge Sport Obermeyer is facing is uncertainty. The demand for each of the styles is completely un-deterministic and is very hard to predict. At the same time, Obermeyer production cycle is very long which is making it nearly impossible to adapt to the market. On one hand, if the produced items do not sell, Obermeyer incurs the loss of manufacturing cost. On the other hand, if we do not produce enough of the product to meet all of the demand for it, we lose the unattained revenue and lost demand that…
