Valkyrie Case Study Essay

4334 Words Jun 8th, 2011 18 Pages
EXECUTIVE SUMMARY

Valkyrie Lighting is facing a new challenge within its current operations. This challenge comes in the form of expanding and improving its current supply chain management system. In this new implementation, the Valkyrie management team will need to incorporate three vital concepts to achieve success in the highly competitive market of technical lighting.

With this new supply chain management focus, Valkyrie will experience many issues that will need to be addressed to minimize the time it takes to get its expanded supply chain up and flowing smoothly. A number of the issues that Valkyrie experiences can be summarized into three main issues that are currently holding up Valkyrie’s success in this new endeavor.
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The type of operations performed at the Denver plant is completed in two stages. The first stage represents a repetitive operation because the core pieces of the product are assembled by workers to complete only the technical assembly. There are eight different basic assemblies that are created and then the product is moved to the second stage. The second stage is considered more intermittent because the basic assembled products are then finished to customer style preferences and is the source of the variety among customers. Once the product has been completed, the product is stored into stock located in the Denver plant and shipped based on customer orders. This operation represents a make-to-stock strategy where the product is produced based from forecasts; which are held as inventory until the customer demands a product.

Valkyrie Lighting is in an industry that was highly competitive until a few major companies dominated the majority of the market. The technical lighting industry is a slow-growing market where the order winners are based on superior technology, product variety, and timely delivery. Pricing and customer service are important factors in maintaining the competitive edge along with having advanced technology. The main trend in this market is the moving away from standard designs and being flexible to create a number of products that serve different needs based from the customer.

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