Align Technology is a four-year medical products company that has invented a new product that requires new production processes. Demand for the new product has grown more slowly than the initial forecasts predicted, and the cost structure does not allow the company to become profitable. The manufacturing process includes six different operations located in California, Pakistan and Mexico. The first dilemma requires reducing capacity as demand grows. Increased capacity in the future must take into account time lags, costs, and additional units added power inherent in each of the six processes. Given the uncertainty of accurate sales forecasts company provides new marketing initiatives, production capacity was challenged to create a plan to meet demand while reducing its fixed costs. "Hide
by H. Kent Bowen, Jonathan P. Groberg Source: Harvard Business School 22 pages. Publication Date: September 24, 2002. Prod. #: 603058-PDF-ENG
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