OM Assignment
Kool King Division(A)
( Aggregate Capacity Planning )
Section F
Group 11
Group Members:
AKHIL KUMAR BHASKAR KUMAR GHANENDRA SINGH KIRAN BENNY
MANISHA SANGMA NITIN NAGORI
VARUN SINGH BOTHIYAL
Executive Summary
The Kool King air conditioners company had it’s corporate headquarters in Chicago and
plant in Illinois . Mr. James Lewis was the Vice President and Mr. Tom Stanley the
Marketing Manager had to decide the latest forecast of production for fiscal 1980 in
consultation with the other stake holders. Tom Stanley was responsible for marketing
planning and advertising .The company suffered considerable loss due to the stock outs of
208 volt models in1978-1979 . Hence , Stanley raised the forecast of production from
1114,000 units to 120,000 units stating forecasts hurt more than the team realizes and
informs about the quality complaints . However most of the quality issues were minor
issues and less than 0.5% of the production was returned for repair on warranty. Tom
Stanley suggests that increase in market share is required along with the growing market
and for that better quality standards need to be in place. Other official feel that additional
warehouse may be needed to support the forecast .
Kool king started in 1930 as radio manufacturer and diversified into electronic products
after world war II and was acquired by TIA corporation in 1953. TIA expanded Kool
King’s product range to include oil and gas burners , air conditioners and cooling systems .
Selling the rest of the company TIA retained the room air conditioner with the brand name
and it’s growth was a source of pride to TIA executives .
The division had seven model lines of air conditioners with Cooling capacity ranging from
4000 to 24000 BTU , voltage ratings of 115 to 230 volts with one to three different designs
of mounting hardware option available with the models . Slim line model were frequently
used for double-hung windows too narrow for regular ones. The Breeze Queen series was
capable of being operated as a heater . Kool King marketing was done by TIA marketing
people and was sold as part of full TIA line having good distributor network and field sales
force in large cities .
Production facilities for Kool king had a modern one storey building with 100,000 square
feet of floor space . The facilty was used for assembling on a single assembly line , of all
