Sweet Dreams Executive Summary
Current Operations Management Strategy for SDI:
Sweet Dreams, Inc. (SDI) manufactures mattresses and box springs and sells them primarily to furniture retailers and large hotel chains. Problems began with the recession of the early 90’s, demand was low- so they dropped their prices, but also increased production in anticipation of a bounce-back in sales and to realize greater economies of scale. Sales increased-but not as much as they expected…Management remained confident that the economy would continue to grow stronger, so they kept producing and increasing inventories. Management’s response to the economic downturn did not turn out as expected…due to the pressure of where they stood SDI decided to be more lenient on their credit standards
Sweet Dreams, Inc. (SDI) manufactures mattresses and box springs and sells them primarily to furniture retailers and large hotel chains. Problems began with the recession of the early 90’s, demand was low- so they dropped their prices, but also increased production in anticipation of a bounce-back in sales and to realize greater economies of scale. Sales increased-but not as much as they expected…Management remained confident that the economy would continue to grow stronger, so they kept producing and increasing inventories. Management’s response to the economic downturn did not turn out as expected…due to the pressure of where they stood SDI decided to be more lenient on their credit standards