Risk Analysis and Supply Chain Management for Companies Short-Life-Cycle Products

Abstract

When the supply chain operates in an uncertain environment, especially for fashion products with fast changing trends and short life cycles, matching supply and demand is the main task. This requires enterprises to have the ability to analyze risks and manage the supply chain. This paper is mainly about a case analysis of Sport Obermeyer who is confronting two core issues, Greater products variety and more intense competition have made accurate predictions increasingly difficult and How to allocate production between two suppliers. The key tool to solve these two problems is the Newsvendor Model. Following the principles of the model, the article first calculates the expected quantity and profits of each product. Afterwards, based on the comparison of the mismatch cost of each product, the article provides a preliminary decision. After analyzing the advantages and disadvantages of the suppliers, the article obtains the final result. This process demonstrates some ways on risk analysis and supply chain management and provides some new perspectives for the development of the enterprise and related research in the future.