The general manager of Cambridge Craig manufacturing industry feel that there is room to improve top-line growth through better utilization of plant capacity. The company was losing out on sales due to the highly seasonal nature of demand, the system is loaded more than four months of the year, but it had unused capacity in the remaining months. The general manager had just a lecture, where a flexible approach to pricing as a way to better manage the supply chain was proposed visited … Read more »

The general manager of Cambridge Craig manufacturing industry feel that there is room to improve top-line growth through better utilization of plant capacity. The company was losing out on sales due to the highly seasonal nature of demand, the system is loaded more than four months of the year, but it had unused capacity in the remaining months. The general manager had just a lecture, where a flexible approach to pricing as a way to better manage the supply chain and capacity problems was proposed there. An idea began to emerge: Could Craig making better use of pricing to the demand on the capacity of the plant? If so, this practice would increase profitability, or would it just reduce the sales?
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from
Peter C. Bell,
Benjamin Craig,
Andrew Weston,
Sachin Gupta
Source: Ivey Publishing
5 pages.
Release Date: 24, February 2011. Prod #: W11059-PDF-ENG
Craig manufacturing HBR case solution