Cross River Product Co.
- Pages: 2
- Word count: 384
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Careful review and analysis of the Cross River Product Company’s current situation with production of Umbrollers, Playcribs, and Backpacks for December through February of 1976 deserves careful analysis in terms of current marketing predictions and review of present production functioning capacity.
In comparison to previous years the most stable marketing prediction is that of the Backpacks. The production estimates for the December through February period of 1976 only vary between 6-8% from those of the previous year. This is a very reliable prediction. The Umbroller predictions though mentioned to be reliable are most risky and it would not be recommended to jump to any major changes on the behalf of those predictions and make major changes solely on that product. It is recommended that confirmation on models and color types be obtained as early as possible for cost and all other manufacturing details as well as insurance against loss of orders. The company needs reliable estimates at least in confirmation. The ranges for the Umbrollers from the previous year to the current projections are as follows:
*in parentheses are additional orders added that are also shipped to Canada for full assembly (extra costs)
The Playcrib projections are slightly inflated for December and January compared to the previous years at 50% and 43% respectively though they vary considerably less at 7% for projected production in February.
The problem resolution that is recommended is that management re-examine options available with a production line a type. The Umbrollers are the largest production item if orders do follow through. They do not require extra manpower with a production line a type of assembly nor do they require overtime to produce with full-man power and shipment of a smaller ratio to Canada for the remainder of the assembly. The production line a type can produce a max of 2,000 products per day max. This can run full force or be modified. It is recommended that the company avoid overtime address issue through assembly production or modification of the current assembly line.
Case Study. Cross River Products Company. (1976). Harvard Business School. Document 9-676-086. pp. 1-16.