Answer all the question below - Essay Example

LeapFrog Logistics LeapFrog’s upstream partners: DuPont Co, US printing firm, Capable Toys Ltd, other raw material suppliers LeapFrog’s downstream partners: Target, Kmart, Toys “R” Us, US Wal-MartLeapFrog’s first-tier suppliers: US printing firm, Capable Toys Ltd, other raw material suppliersLeapFrog’s second-tier suppliers: DuPont CoLeapfrog decided to increase its production due to changes in customers’ tastes and preferences. Parents preferred to buy educative toys for their children.

Parents wanted toys that were completely different from the previous ones. Seasonal changes also played a major role in leapfrog’s decision to diversify and trade a variety of products. The company had to increase its sales to meet the growing demand from their clients.2. The data that prompted LeapFrog to increase the production of LittleTouch LeapPads was sales information drawn from various databases. The company’s management used buyers’ demographic data including whether they were English or Spanish Speakers, and which stores they bought from.

This data was drawn from retail stores including US Wal-Mart, Target, Toys “R” Us and Kmart. This data was analyzed by the company and used to forecast the demand for the toys. LeapFrog communicated its decision to increase production of toys to Capable Toys within weeks; in the month of August. This was after the predictions were verified by the company’s management to be trustable. 3.When the demand for LittleTouch grew, Capable Toys had to increase it productivity to meet the rising need.

However, there was no immediate way of increasing the company’s production. Capable Toys Ltd of Zhongshan, China had to hustle and try hard to get extra custom-designed electronics, plastic molds and baby-drool-proof paper. There was also need to hire more workers. Furthermore the company needed to make more production tools. The production problem was solved by ordering the production of two more sets of production tools which finally helped boost production. The tools were better designed – they were made such that they could produce unique toys while reducing their fail rates from 5% to 0.3%. 4.

Capable Toy Company had problems getting a supplier for sensitive touch membrane but then they were able to get other suppliers. The company also needed a special material that was drool–resistant and ink absorbent called Tyvek. The only way to get this material was by getting it supplied by third party, not directly from the manufacturer, DuPont Co. LeapFrog approached a U.S. company that could get this material directly from DuPont Co and gave it the printing contract as well. This move however added 50 to 60 cents per book in production costs.

5Leapfrog Company made a decision to use air shipping and fast boats to transport its products from Hong Kong to Los Angeles to respond to the shortage experienced. Using air shipping as a desperate alternative to supply products to the market sliced the company’s profits almost to null, although it was fast and therefore most efficient. Using fast boats on the other hand was slow as deliveries could only be made after 14 days on condition that there were no stopovers during the journey. This means was therefore quite too slow and would not boost shop inventories in time, although it was the cheaper alternative.

If it was in August, the company would have considered using road and railway transport to deliver goods more affordably and without the risk of losing so many customers.