JIT for the Holidays

JIT for the Holidays - OM517: Case Paper #3 JIT for the...

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OM517: Case Paper #3 – JIT for the Holidays The North Pole Workshops (NPW) is in a just-in-time business. It has only one delivery date, December 25, so it’s business requires very accurate demand forecasting and flexible manufacturing system. Excess inventory would be useless on December 26, and neither Santa nor the elves want to disappoint any children for not having what they want on Christmas. However, there exist sudden, unexpected spikes and sharp dips in demand for certain toys right before the delivery date, when the facilities are already running in the full capacity. NPW’s procurement and manufacturing systems are not designed to well respond to these uncertainties in the demand. Not only the planning process is not properly linked to the market inputs such as incoming letters from children and reports from mall Santas, but also the extrapolated demand forecast itself is not catching up with changing market trend, children preferences, product variety, and regional differences. Johnson says NPW should stop catching up with uncertain demand and rather create one instead by utilizing various marketing schemes such as tie-ins to other fads, more direct and aggressive market researches, and the buzz strategies through controlled scarcity and variety. Also, he recommends more
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This note was uploaded on 09/08/2009 for the course OM 522 taught by Professor 123 during the Spring '09 term at Alabama.

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JIT for the Holidays - OM517: Case Paper #3 JIT for the...

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