Tugas 3_Align Technology Inc.pdf - Align Technology Inc Matching Manufacturing Capacity to Sales Demand Background Case Analysis Align Technology inc

Tugas 3_Align Technology Inc.pdf - Align Technology Inc...

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Page | 1 Muhamad Ardika (1806161506) Ricky Arnaz (1806249522) Align Technology, Inc : Matching Manufacturing Capacity to Sales DemandBackground/ Case Analysis Align Technology, inc. founding a product that simplify straighten teeth without metal braces. the company now stood at the two-year mark since introducing its first commercial products. Because of this incredible invention, the company problem is shrot of its manufacturing capacity and consequently, the company was not meeting its financial targets. with an average selling price of $1,600 per case at an average cost of $1,800 the company would never reach its targeted 50% gross margins by the end of the year. it was already july 2001. The core of the problem was that Len Hedge, the company`s vice precident of manufacturing, had built production capacity to match the company`s aggresive sales forecast, which anticipated rapid growth in demand following a series of advertising campaigns. To make matters worse, the company had a policy of maintaining at least

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