Pyrex Case Study Summary

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Pyrex Case Study 1. What are the pros and cons of continuing production at the Charleroi plant? Answer: Pros: * Top level product quality is assured. Manufacturing processes are under close monitoring. * Convenient logistics and short delivery time lead to quick market response, lower inventory and higher customer satisfaction. * Intellectual property and the manufacturing technologies can be better protected. * Products “made in USA” give customers more confidence and may generate extra appreciation. * Large customers, like Walmart, Target and Bed Bath and Beyond are expecting the products to be local made. * Effectively avoid the potential vendor trust problems and supply chain risk is lower. * Design…show more content…
* All products coming from one furnace limits PYREX’s capability to fulfill market’s various demands at same time. * The high fix costs associated with the furnace and the vast expense of stopping and starting the melting process reduce the production flexibility of PYREX, forcing the facility to operate continuously regardless of the actual market volume. * The low profit margin undermines PYREX’s ability to invest in new product design and technology innovation. * Fail to utilize PYREX’s global resources and optimize the supply chain to relieve the market volatility. 2. What downside might there be with offshore outsourcing production of the PYREX product line to overseas suppliers? Answer: * No foreign plant can offer sufficient capacity to product all Pyrex line. Multiple vendors would cause extra management difficulty and supply chain complexity. * It is more difficult to maintain consistent product quality, which may lower the customer satisfaction and sabotage the brand image. * Tariff is an uncertain factor which has to be taken into consideration. US government may impose extra tariff to protect domestic

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