POM 651
Case 4
Merriwell Bag Company’s success on operation
Description:
This case talks about the success on a small, family-owned company — Merriwell
Bag Company. Merriwell Bag Company targeted a right market niche, which had
no intensive competition. Several strategies also contributed to Merriwell Bag
Company’s success. One strategy is that Merriwell Bag Company does not rely
on one customer too much. No one can gain bags over 15 percent of sales so
that the risk of breakdown is decreased. Merriwell Bag Company does not
pursue new customers aggressively.
Merriwell Bag Company applied a highly accurate demand forecast, which allows
Merriwell Bag Company to meet the special needs of customer, through its own
warehouse facility and routing schedule of truck line. It is difficult for Merriwell
Bag Company to forecast the demand because of the seasonal nature of the
product. Merriwell Bag Company needs to consider the seasonal factor and find
the right method.
Chapter relation:
Merriwell Bag Company’s case illustrates a realistic forecasting problem. And
