Short Case Scenario 7-1

question 106

Essay

Short Case Scenario 7-1
Alan Jackson is the founder and owner of Sky Scooters, a small manufacturing company located in San Jose, California. For years, Alan toyed with ideas for a motorized scooter. Seeing the success of the Segway scooter, Alan decided to act. Although his design, the Sky Cruiser, is not as well known as the Segway, it incorporates many of the same benefits. Adding to its appeal, the Sky Cruiser sells for almost $1,000 less than the Segway. Virtually all Sky Cruisers are sold through direct appeals on the QVC shopping network. Overwhelmed by recent demand, Alan has hired his sister, Colette. Colette, a recent business school graduate, has suggested that Alan consider a just-in-time production system. Alan wonders if this would be in his best interest.
-What advantages could Sky Scooters expect from switching to a just-in-time system?

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Definitions:

Stored-Value Card

A plastic card that contains data regarding the value of the card, thereby allowing EFTs to be made.

Magnetic Strip

A strip of magnetic material on a credit card or other card containing data that can be read by swiping it through a reader.

Data

Information, especially facts or numbers, collected to be examined and considered and used to help make decisions.

Cutoff Hour

The specific time by which a certain action must be completed, often used in banking and other time-sensitive environments.