Sport Obermeyer
Wally needs to accurately predict market response (demand) to different styles and colours
for its 1993-1994 line of skiwear fashion so as to determine the production quantities. He
had to make relatively precise predictions with scant information about how the market will
react to the new line. There is no clear indications yet emerge about how end-consumers
were responding to the company’s current 1992-1993 line. Retailers’ feedback will only ben
received after next March’s Las Vegas trade. Long wait for market information is likely to
delay delivery to retailers and late delivery would reduce exposure of consumers would
have to Obermeyer products. The accuracy of the new ski fashion line’s salability
determines the company’s revenue each year. There is a rising problem of inaccurate
forecast of retailer demand in Obermeyer in recent years due to greater product variety and
more intense competition. This resulted in two problems: company was saddled with excess
merchandise for styles and colours that retailers had not purchased, styles with worst
selling records slod at deep discounts, often well below their manufactured cost. On the
other hand, most popular items are frequently ran out though clearly desirable, resulting in
loss of large sum of potential income annually since the company is unable to predict which
are the best-sellers.