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Four Star Industries Singapore – Matching Supply
By S. Viswanathan & D. G. Allampalli |
| Publisher Ref No: | ABCC-2009-005 | Pub/Rev Date: | 2009 |
| Industry: | Furniture | Case Length: | 12 pages |
| Teaching Note Ref: | - | Teaching Note: | - |
| Organisation: | Four Star Industries | Period Covered: | 1996 - 2002 |
| Country: | Singapore | Level: | Undergraduate/ Postgraduate |
| Publisher: | The Asian Business Case Centre, Nanyang Technological University |
Abstract
In 2002, Neo Sia Meng took over as Executive Director of Four Star Industries Private Limited founded three decades earlier by his parents. After joining the family business as Director in 1996, Sia Meng saw several local and foreign mattress manufacturers enter the Singapore market. This intensified the competition in the local market which was already seasonal and volatile.
The increased competition resulted in a proliferation of product offerings from all the manufacturers. The local dealers who dominated the retail mattress market sought an exclusive range of in-house models from the local manufacturers. As Four Star depended heavily on the local dealers, it tried to accommodate their demands to increase its product range and service level. However, as Four Star substantially increased the variety of mattress offerings, its operations became chaotic, and matching demand with the correct inventory of mattresses became a significant challenge.
The order fulfillment problems created significant pressures on the manufacturing operations and Sia Meng was worried that these operational problems might provoke some of his long serving employees to consider leaving the company. Sia Meng pondered on the short and long term options for Four Star to move towards a responsive, but cost-effective operations model.
Issues: Inventory and supply chain management; Production scheduling; Managing product proliferation
About the Authors
