Subject category:
Production and Operations Management
Published in:
2001
Length: 23 pages
Data source: Field research
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Abstract
Like the high technology industry, toys suffer from many supply chain ailments including short product life, rapid product turnover and seasonal demand. Coupled with long supply lines and ongoing political and economic turmoil in Asia, toy makers face an unusually complex set of risks. Managers in many businesses can learn valuable lessons in managing uncertainty from toy makers. Set during the Asian financial crisis, the Mattel case describes a facility location decision for Hot Wheels and Matchbox cars. Besides the international location decision, the case illustrates: (1) how toy makers manage demand uncertainty; (2) Mattel''s outsourcing strategy in Asia; and (3) a novel approach for managing product rollover. This case was sponsored by the Indiana University CIBER Case Collection.
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Abstract
Like the high technology industry, toys suffer from many supply chain ailments including short product life, rapid product turnover and seasonal demand. Coupled with long supply lines and ongoing political and economic turmoil in Asia, toy makers face an unusually complex set of risks. Managers in many businesses can learn valuable lessons in managing uncertainty from toy makers. Set during the Asian financial crisis, the Mattel case describes a facility location decision for Hot Wheels and Matchbox cars. Besides the international location decision, the case illustrates: (1) how toy makers manage demand uncertainty; (2) Mattel''s outsourcing strategy in Asia; and (3) a novel approach for managing product rollover. This case was sponsored by the Indiana University CIBER Case Collection.