Case 1 Essay
This case analysis is from chapter 1 of our text book, Operations Management. It is found on page 25 and titled, "Hightone Electronics, Inc."
Summary of the Facts of the Case: Hightone Electronics, Inc. (HEI) is an electronic components supply company founded over 50 years ago. The company has a reputation for high quality and service. HEI's simple business of supplying radio repair shops with parts has grown to include home delivery, and larger customers such as technical schools, universities, and well-known corporations. The company stocks and sells over 22,000 different items and most customers receive their order within 48 hours. George Gonzales is …show more content…
Is George Gonzales correct in his assessment that this would not be "business as usual"?
Yes. The core functions of the physical locations of the catalog-order business will remain mostly the same as before. They will receive orders, and ship out goods. However, the methods of obtaining orders, customer feedback, return orders, special orders, and many other less notable but still necessary functions will change drastically. If done properly, it will most likely streamline the business, but the initial transition will be difficult.
2. Recall that HEI wishes to continue its reputation of high quality and service. Identify key operations management decisions that need to be considered. * Will we receive more/less orders? * If demand increases, can HEI supply the demand? * If