U.S. STROLLER

Synopsis and Purpose

U.S. Stroller is a manufacturer and distributor of a line of baby strollers. The company

makes three types of strollers in a typical batch production system. Recently, profits are down and

competition is entering the market that the company dominates. Proposals have been made to go to

a JIT production system or to a Cell approach for production. Students are asked to analyze these

proposals and come up with a recommendation.

The purpose of this case is to show how a batch system can be dramatically improved by

JIT or Cellular concepts. The case clearly describes the changes that must be made in the

production system to achieve the benefits desired. This amounts to a complete change in layout of

the production floor and a substantial overhaul of the MRP system. The case nicely ties together

some of the material from the text on JIT, GT, EOQ and MRP. The case also requires the student to

estimate cost and benefits of these types of proposals and to identify negative effects of JIT and GT.

Discussion Questions

1. Evaluate the current situation facing U.S. Stroller.

2. Discuss the pros and cons of the options presented in the case.

3. What will be the impact of these options on the MRP system currently in use?

4. What option do you recommend and why?