Donner Company Case Essay

1295 Words Oct 20th, 2008 6 Pages
Case: Donner Company

EXECUTIVE SUMMARY The Donner Company is a manufacturer of printed circuit boards. They need to address several issues in their supply chain operations to improve their service level because net income in the month of September has drastically decreased. Before September, growth was steadily increasing every month. They found that the major problems include unpredictable bottlenecks in manufacturing, lower than expected productivity and lower than expected quality and delivery. After addressing these major issues, I find that investing in more CNC’s and phasing manual drilling out of the manufacturing process can go a long way to improve the service level of the company.

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Exhibit 4 shows the most common order sizes that Donner Company’s clients use. Fifty percent of the orders are for ten or less circuit boards. Eighty percent of the orders are for eighty-four or less circuit boards. The remaining twenty percent of the orders have circuit board numbers ranging from eighty-four to over one thousand. Exhibit 5 gives detail of the value of actual shipments in December. It is troublesome to see that Donner Company is losing money on some of their shipments to customers, as much as $8,000 in one shipment on the 27th.

STATEMENT OF THE PROBLEM The problem Donner Company has is that when there is a bottleneck in production because of the uncertainty of demand, Donner Company cannot adequately respond to these changes for various reasons. These problems need to be resolved for Donner Company to maintain its competitiveness in a fast paced market.

- Should Donner Company specializes in larger or smaller orders to buffer against uncertainty?
- How can Donner Company anticipate bottlenecks in their manufacturing process?
- How can Donner Company utilize the four functions of inventory functionality?
- Could Donner Company take advantage of geographic specialization?
- Could Donner Company utilize decoupling to maintain maximum efficiency?
- How well is Donner Company balancing supply and demand?
- Could

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