The general manager of Craig Manufacturing Cambridge Branch felt that there was room to improve top-line growth through better use of plant capacity. The organization was losing out on sales due to the highly seasonal nature of demand; the plant was completely loaded four months of the year, but it had unused capacity during the remaining months.
The general manager had only attended a lecture where a more adaptive way of pricing had been suggested as ways to better manage capability issues and supply chain. An idea began to emerge: Could Craig Manufacturing use pricing to match demand to plant capacity? If so, would this practice boost profitability, or would it only reduce sales?
PUBLICATION DATE: February 24, 2011 PRODUCT #: W11059-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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