Case Study - SUPPLY CHAIN CHALLENGES AT LEAPFROG
Questions
1. Draw a map of the supply chain for LeapFrog, including the retailers, Capable Toys, and suppliers of key materials (i.e., Trek). Which supply chain partners are upstream of LeapFrog? Which are downstream? Which partners are first-tier suppliers? Second-tier suppliers?
2. What data ultimately led to LeapFrog's decision to in-crease production levels of the LittleTouch LeapPads? Where did these data come from? How long after inter-preting these data did LeapFrog start talking with Capa-ble Toys about increasing production levels? Was it days, weeks, or months?
3. What part of the production process limited output lev-els at Capable Toys? How did Capable respond to the challenge?
4. What were some of the material sourcing challenges Leap-Frog and Capable Toys faced? How did they resolve these problems?
5. What type of logistics solutions did LeapFrog use to get the toys to the stores on time? What are the strengths and weaknesses of these solutions? If it had been August rather than December, what other options might LeapFrog have used?
Case Study - FORSTER'S MARKET
Questions
1. What are the two capacity options that Robbie needs to consider? What are their fixed and variable costs? What is the indifference point for the two options? What are the implications of the indifference point?
2. Draw the decision tree for the roaster decision. If Forster's does not invest in the roaster, does Robbie need to worry about the different demand scenarios outlined above? Why or why not?
3. Calculate the expected value for the two capacity options. Keep in mind that, for the roaster option, any demand above 14,400 pounds will generate revenues of only $2.90 a pound. Update the decision tree to show your results.
4. What is the worst possible financial outcome for Forster's? The best possible financial outcome? What other factors-core competency, strategic flexibility, etc.-should Robbie consider when making this decision?
Case Study - CATHERINE'S CONFECTIONARIES
Questions
1. What are the three major types of customers Catherine serves? How do they differ from one another? What do you think the order winners are for each group?
2. Consider Catherine's decision to lease the restaurant space (a structural decision). Was this decision consistent with the needs of her different customers? Why or why not? How did this decision change Catherine's business?
3. Consider Catherine's initial decision to hire unskilled labor to help with the walk-in business (an infrastructural deci-sion). Was this decision consistent with the needs of her different customers? Why or why not?
4. Catherine is clearly unhappy with the way things are going right now. What would you suggest she do? What infor¬mation would you like to have before making a decision?