Subject category:
Production and Operations Management
Published by:
Harvard Business Publishing
Version: 17 March 1995
Length: 15 pages
Data source: Field research
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Abstract
In early 1990, the company is contemplating changes in its European plant network for producing hypodermic products, including the total production capacity to be provided, the number and location of plants over which to spread this capacity, and which products should be allocated to various plants (and countries). After years of having too much capacity, the latest sales forecasts indicate that it will soon be running out of capacity, and the company has to decide how to react. In analyzing this decision, students are invited to review the decision-making processes that the company has followed in the past - and that have resulted in too much capacity and high manufacturing costs - and asked to propose changes in the way it approaches such decisions in the future.
Location:
Industry:
Size:
Fortune 500, USD350 million revenues
Other setting(s):
1990
About
Abstract
In early 1990, the company is contemplating changes in its European plant network for producing hypodermic products, including the total production capacity to be provided, the number and location of plants over which to spread this capacity, and which products should be allocated to various plants (and countries). After years of having too much capacity, the latest sales forecasts indicate that it will soon be running out of capacity, and the company has to decide how to react. In analyzing this decision, students are invited to review the decision-making processes that the company has followed in the past - and that have resulted in too much capacity and high manufacturing costs - and asked to propose changes in the way it approaches such decisions in the future.
Settings
Location:
Industry:
Size:
Fortune 500, USD350 million revenues
Other setting(s):
1990