2. Using Table 7.2 and Figure 7.12 as guides, how would you describe the service side of LWT’s business prior to 2005?

What were the managerial challenges?

For nearly 50 years, Loganville Window Treatments (LWT)
of Loganville, Georgia, has made interior shutters that are sold through decorating centers. Figure 7.20 shows some of the various styles of shutters made by LWT.
Past Manufacturing and Service Operations: 2004 Traditionally LWT supported a limited mix of standard products. At any particular point in time, the mix of products might consist of six different styles offered in five predetermined sizes, resulting in 30 possible end products. LWT would produce each of these end products in batches of 500 to 1000 (depending on how popular each style/size combination was) and hold the finished products in the plant warehouse. When a decorating center called in with an order, LWT would either meet the order from the finished goods inventory or hold the order to be shipped when the next batch was finished.
LWT’s products were sold through independent decorating centers located across the United States and Canada. LWT would send each of these decorating centers a copy of its catalog, and the decorating centers would use these catalogs to market LWT’s products to potential customers. It was the responsibility of the decorating centers to work with customers to price out the shutters, make sure the correct size and style were ordered from LWT, and resolve any problems.As a result, LWT almost never dealt directly with the final customers.

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FIGURE 7.20 Sample Products Made by LWT