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Obermeyer

Sport Obermeyer - Inventory Models.doc
This assignment is designed for practicing the concepts and tools
covered in the inventory models.

Parka Production

We use the sample data given in Exhibit 10 from the Sport Obermeyer
case. Assume demand of each style of parka is normally distributed.

Make a recommendation for how many units of each style Wally Obermeyer
should order during the initial phase of production. Assume that all ten
styles in the sample problem are made in Hong Kong. Also assume that
there would be no future production for these parkas (i.e., only one
production decision is taken to satisfy the demand). Ignore the minimum
order quantity constraint, and ignore the fact that the total size of
your order must be less than or equal to 10,000.

Take your answers to part a) above, and reduce the number of units for
each style by 10%. At this level of reduced production, if you could
produce just one more unit, which of the ten styles would you choose?......


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Approximate Word Count: 1463
Approximate Pages: 6 (250 words per double-spaced page)

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