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Discussion 1

1. In terms of production strategy, should Boone stick with mass production or try something else? Explain.

Personally, I think they should keep mass producing the product to a certain extent. Elvis’s current goal is “to make the product or service more attractive to potential and actual users so that demand is created” (Coyle et al., 2017, p. 173). Having the option to modify and customize the club to a customer’s liking means that there really isn’t a solid way to predict the demand of each customizable item. Elvis can therefore manufacture a certain number of different options and provide them to their vendors as store models that can go on display at their locations. This would allow customers to view and test out the clubs and then give them the option to special order the variation that they like the most. Elvis can mass produce booklets that hold all the options for the different customization options and distribute them to vendors along with the clubs. Customers can then choose their options and submit their orders directly to a store employee, who could then input the order directly to Elvis. This would “kill two birds with one stone” by giving customers what they want, while creating demand for Elvis without forcing them to mass produce every single component of the different club variations.

3. What do you think of Parker’s idea to outsource the manufacturing of the King?

Outsourcing could very well be cheaper than producing the King in house. Outsourcing all phases of manufacturing, warehousing, and distribution to maintain flexibility in design and production could potentially eliminate the need for extensive fixed assets and leverage excess capacity (Paulk, 2002). Building demand plays a central role to the acceptance of the King in the marketplace and the success of Elvis. Retailers and OEMs will not purchase component products without demonstrated demand from the market, and golfers will not be motivated to switch brands unless they are convinced of the benefits of this partially new product. However, the struggle would be in finding the right company who is able to complete the task well and do it in a timely manner so that Elvis does not fall behind on getting the orders out to their retailers and customers.

-Kristina

ME

1. In terms of production strategy, should Boone stick with mass production or try something else? Explain. 

For all of the current circumstances revolving Boone I would have to advice against mass production. Usually you get more benefits out of mass production in cases where high demand items are grouped collectively together. With the increase in offerings from 1 to 72 new production process forecasting will be too difficult. An option could be to mass produce until you meet your target goals then scale back on production to just maintain. Making orders based solely upon consumer request then you can prevent over production and still meet demands. 

3. What do you think of Parker’s idea to outsource the manufacturing of the King?

Outsourcing can be beneficial in several instances, not being able to keep up with the production rates is a situation where you would utilize outsourcing. If you do a cost analysis and the outsourcing outweighs the profits then I wouldn't recommend outsourcing. Parker's idea isn't a bad idea, King just needs to be able to ensure a profit from the outsourcing to make it worth it. It does reduce the stress for Parker if certain aspects are farmed out to King, they also can save manpower and money by outsourcing. 

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