The subject area of the case is operations management and capacity planning. The case adopts different operation strategies to use the idle capacity.
The case study is suitable for discussion in masters level classes. The case explains the situation of a company which is fighting for its survival. The case reveals the alternative operations strategies it applies to maximize its capacity utilization and reduce its costs.
The case describes a paper producing company which is earning low margins. The company’s capacity remains unused during the off-seasons. The company then plans to share its capacity with another dying industry. Both the companies plan to cooperate and share resources. However, there are other attractive alternatives too and the dilemma situations leave the gap for continuous discussions.
The case aims at providing potential alternatives to the students and initiating healthy discussions. The students will be able to understand the capacity utilization dilemmas and applicability of the operations strategy concept in practice.
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CSS 9: Operations and Logistics.
