o ensure a timely delivery. These shipments are especially important especially when understanding the strict quota restrictions in certain product categories between China and the United States. The United States government limited the numbers of units that could be imported from China. Government officials at the United States port of entry reviewed imports and if products were found violating quota restrictions they were immediately sent back to the country of origin. Quota restrictions were imposed on the total amount of a product category of all companies imported from China so Sport Obermeyer rushes to get their products into the country before other firms use up the available quota. If one of Sport Obermeyer's units were returned it would break down the cycle of production and late deliveries would affect retail space and overall company profits. The final period is dominated by deliveries to retailers. During August, UPS and RPS are used to transport the merchandise to there retail location. This is done early to make sure there is time to request replenishment. The winter retail does not peak until December and January but by then retail stores know what is selling and what is not. They can order more of the items that have been sold out. If orders are delayed, profit is lost because Sport's Obermeyer is unable to ship its products to meet the new demand. Inaccurate forecasts of retailer's demands and timing errors have had a negative result on sales that have given the company excess merchandise and items were sold at deep discounts at the end of the season. Under Wally's administration Sport Obermeyer's production commitment for the first half of production was 24% of the wholesale price. The projected demand for the 1993-94 season would be an earning of 27 dollars on each Rocco parka priced at 112.50 (.24-*112.50). The projected loss for Sport Obermeyer is 8%. For every Rocco parkas not sold, Obermeyer would be losing $...
