Essay on Case Study Analysis Oultine 2015 Foldrit - 860 Words

Title of Case Author of Case (the person(s) who wrote the case) I. CASE PROTAGONIST 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.†¦show more content†¦inventory costs less as well ii. implications, non-financial – fatigue which declines quality and yield 1. may not appeal to all employees, decrease in moral, not long term solution iii. risks – if the demand is not accurate the use of overtime is for nothing b. Solution 2 – Increase staff temporarily i. implications, financial – hiring skilled workers costs $1500 in recruiting and administrative expenses. ii. implications, non-financial – more risk if demand not met iii. risks – if demand was not met firing new workers would be demoralizing. c. Solution 3 – Changing designs i. implications, financial – 15,000 one-time charge, saves money save worker, increases quantity that you can produce ii. implications, non-financial – one month to fully implement. iii. Risks – none d. Solution 4 – Increase inventory i. implications, financial – Money that is sitting when credit is tight ii. implications, non-financial - Minimal only if demand is accurate, warehouse capacity, taxing machinery iii. risks – With credit expense carrying a low inventory would cause concern, need to replace machinery e. Solution 5 – Subcontracting i. implications, financial – add 20% to cost of labor of products. ii. implications, non-financial – do not have to commit to minimum order iii. risks – unnecessary use of finances, no control over quality V. CONCLUSIONS – rank the options 1-5 with 1 being the highest in terms of risks versus benefits, as well as how well it aligns with