Chad's Creative Case Study

CHAD’S CREATIVE CONCEPTS

Main Problem:

The standard lines sales is steadily increasing but the costumed furniture is given more attention because it has more sales compared to the standard lines. This leads to the standard furniture not being finished and requires stages to complete. Not just that, but also company needs to have bigger storage or space for this kind of situation.

Objectives:

1. To rent a bigger warehouse wherein they can accommodate the inventory resulting to increase the holding cost.
2.  To have Inventories management
3.  To Allocate of raw materials
4.  To Schedule about how products to produce so that it will not be sitting around their warehouse.
5.  To Develop forecasting methodology and techniques to understand the demands.

SWOT ANALYSIS:

STRENGTHS:

1. They are very good about customizing their products.
2. Customers already know about their capabilities as a producer.
3. Good quality of their products
4. Proper management because they are no complains about their product
5. Good quality control

WEAKNESSES:

1. Customized furniture are given more consideration because they are more saleable compared to the standard products.
2. They don’t have proper warehouse that will fit their inventory.
3. Other standard products are not finished because if there is a new customized product they will make it first.

OPPORTUNITIES:

1. They can widen their sales because they have good reputation for their customers.
2. There sales will be better if they will have innovation in their management.
3. Big warehouse means big space where they can have more space for their products and able to sale more

Threats:

1. Some products will be destroyed/damaged because they don’t have enough space to place.
2. Competitors is always a threat if you don’t have innovation.
3. If they continue doing this kind of scenario they might lose some of their sales because when they sell the product it will be not in the good state because it has been place in a safe area.

ACAS:

1. They should make a warehouse to have more inventory.

Advantages:

Gain more storage for their products.

They will make more products because they have enough storage for it.

Disadvantages:

It will be costly for the company because they don’t have budget for it.

1. Capacity to accept demand for both product lines

Advantages:

They will gain more sales because they will be accepting more demand that the customer want.

Customers will be buying from them frequently because they will be accepting demands.

Disadvantages:

The quality of the product are not really good because making of many product doesn’t have really good quality control.

Customer might complain because of the product that they don’t expect to get.