Align Technology is a four-year medical products company that requires a new product invented new manufacturing processes. The demand for the new product has grown more slowly than initial forecasts predicted, prevented and the cost structure of the company profitable forever. The manufacturing process includes six different operations in California, Pakistan and Mexico. The first dilemma requires reduction of capacity until demand grows. Increasing capacity in the fut … Read more »

Align Technology is a four-year medical products company that requires a new product invented new manufacturing processes. The demand for the new product has grown more slowly than initial forecasts predicted, prevented and the cost structure of the company profitable forever. The manufacturing process includes six different operations in California, Pakistan and Mexico. The first dilemma requires reduction of capacity until demand grows. Increasing capacity in the future requires consideration of the delays, costs and incremental units of additional capacity inherent in each of the six processes. Given the uncertainty of the exact sales forecasts as the company performs, new marketing initiatives, the manufacturing organization has been challenged to create a capacity plan to meet demand while lowering their fixed costs.
«Hide

from
H. Kent Bowen,
Jonathan P. Groberg
Source: Harvard Business School
22 pages.
Publication Date: Sep 24, 2002. Prod #: 603058-PDF-ENG
Align Technology, Inc.: Matching capacity to demand distribution HBR case solution