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LeapFrog Case Study 1
Transcript of LeapFrog Case Study 1
At Leapfrog Monday august 11, 2003 sold 360 of his company's LittleTouch LeaPads in introduction. Forecasting software told
Mr. Carlson that he would need about 700.000 units. At a time when other toy companies were unloading, LeapFrog began placing a huge new order. Electronic Commerce Retailers became less guarded about market data. Selling numbers for each store.
Demographics customer. MR. Carlson can make various extrapolations.
with the conclusion that it was a genuine hit. After 6 weeks:
sold 5.000 units
forecast: more than 700.000 in 2003 Global Sourcing, capacity Decisions and Manufacturing processes 12 months 350.000 LittleTouch toys. Same amount in 4 months. Special task force for LittleTouch emergency Production time 40 sec.
Needed more raw material.
Lack of custom-parts. Manufacturing processes 24 hours a day.
Three 8 hours shifts. Limit of 1.750 toys a day per set. OK for third set in late August. Mid-October start fourth set. Improved output to 6.300
Fale rait from 5% to 0.3% Material Sourcing Trouble finding a supplier for touch-sensitive mebranes Colthlike paper called Tyvek Second vendor for touch-sensitive mebranes Third-party supplier for Tyvek Logistics With use of airplanes sales went up again. Sales went down because lack of stock. Special fast boots.
14 days. Supply chain Leapfrog