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How to deal with increasing markdowns and stockouts, and effectively plan the production allocation between China and Hong Kong plants
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Ramamurthy Raghavendra Sport Obermeyer Inc Problem: How to deal with increasing markdowns and stockouts, and effectively plan the production allocation between China and Hong Kong plants Market Situation: Sport Obermeyer had inaccurate forecasts of retailer demand along with greater product variety and more intense competitor made accurate predictions increasingly difficult. Columbia sportswear was a lower price; high-volume-per style competitor had increased sales over the past 3 years and had captured about 23% of the adult ski-jacket market in the same year. The market segmentation based on five different "genders": men's, women's, boy's, girl's, and preschoolers', each being segmented according to price, type of skier, was not effective in withstanding the "fashion forward" market. The peak-retailing season is only two months coupled with high demand uncertainty and Obermeyer was facing severe manufacturing constraints during the critical summer months. The key component of increasing sales in this industry is to keep the high variety of styles as...
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