Case Study Analysis Oultine 2015 Foldrit Essay

Words: 861
Pages: 4

Title of Case
Author of Case (the person(s) who wrote the case)

Name, position, and title of protagonist – Jose Ramos, VP of Manufacturing
Name of company. Nature of company – FoldRite Furniture Co.
Educational and professional background of protagonist.

II. RELAVANT FACTS (these subheadings are specific to FoldRite)
a. Economic Environment – Although in a deep recession, FoldRite is experiencing a welcomed yet unexpected demand for their products.
b. Company History – FoldRite was founded in 1987 and at that time only offered folding banquet tables. This product was light yet durable and was the base for their expansion into similar products. Soon after this FoldRite released foldable tables and stackable chairs.
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If this option does not pay off, there are not only unemployment payments, but also demoralization of workers that must be fired after recently being hired.
b. Solution 3 is also quite risky. More-so financially rather than not financially. The cost of having workers being paid overtime is a significant liability. This would work to make the number of units increase quickly.
c. Increasing inventory is only risky if the forecasted demands are not accurate. Having the inventory sit is costly but not horrible because it will eventually be sold. At the same time it would insure that orders are met and customer service stays high.
d. Subcontracting isn’t especially risky but is again a cost that has to be taken on. It is better than having credit but still something that is considered last ditch. There is limited risk seeing as there is no minimum order needed.
e. The least risky is to change the model. There is an initial cost and time commitment but other than that it is an improvement that will help in the long run whether there is an increase or not. It is always good to keep idle time and production time down.

VI. RECOMMENDATION - identify your recommendation based upon an identified solution/combination of solutions.
a. I would recommend using Solution 1. This is because there is no need to train new employees. It is better to use employees that know the company. I would rather give them additional paid work even though it is slightly more