... projection. Another opportunity is utilizing real time point of sales data to update their forecast continuously. The above steps need to be supported by efficient production planning. To maximize its profit, Obermeyer needs to balance the utilization of non-reactive and reactive production capacities. Early ( nonreactive ) production capacity in China should be utilized to produce styles with more stable demand ( better forecast accuracy ), such as Seduced style which has the lowest forecast error ( Exhibit 10, average forecast of 4017 and 556 Standard Deviation ). Another advantage of running this style early is the low financial risk of overages due to low price and defects due to quality issues. ( Seduced has the lowest price, $73 ). The fact that this item is the largest seller ( by volume ) is suitable to be produced in China which has higher minimum order qty than Hong Kong (HK). The ...

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