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Decision Dilemma at Arvind Textiles

CASELET, OPERATIONS MANAGEMENT
ET Cases, 2 Pages

Case Preview

Decision Dilemma at Arvind Textiles

 

Arvind Textiles, a T-shirts manufacturing company established in June 2014 by a textile engineer, Anup Joshi (Anup), manufactured T-shirts – from knitted or woven cotton fabric – in a variety of colors, patterns and styles, such as the standard crew neck and V-neck, as well as tank tops and scoop necks with sleeves – short or long, capped, yoked or raglan style. T-shirts made by the company for adults were generally of various sizes like small, medium, large, extra-large (XL), XXL and 3XL.

However, the company specialized in making crew neck T-shirts using 100% pure cotton fabric and printing the design on the T-shirt using screen printing process. Knitted fabric is generally preferred to make T-shirts because it is soft, bulky, with slight elastic and has good draping quality as the yarn is converted into loops and then intermeshed to form fabric. However, the company does not design the model of the T-shirts or the design for printing. These models and designs were provided by the customers. In the early 2015, the company received orders from various renowned brands in the country. The company does not knit but purchases the fabric as per the requirement of the customer orders.................

Teaching Note Preview

Decision Dilemma at Arvind Textiles

 

Prerequisite Conceptual Understanding

  • • Jay Heizer, et al., “Quantitative Module A: Decision-Making Tools”, Operations Management, 9th  Edition, Pearson Education, 2008

 

Synopsis

This caselet is meant for learners pursuing course in Operations Management. This caselet enables an understanding of the application of Decision Tree Analysis. The caselet provides a brief about the dilemma of purchase for Anup Joshi (Anup), the founder of Arvind Textiles. Arvind Textiles was established by Anup, a textile engineer in mid-2014. The company manufactured T-shirts, which involved various stages like dyeing, cutting, design printing, stitching, checking of quality, ironing and finally packing. The process takes a stipulated amount of time at each stage. However, being a startup the process of the company was not automated and considerable amount of workforce was involved. Anup was considering to buy a textile store to improve the company’s processes to be effective and efficient, nevertheless as the company was in a nascent stage he was in a dilemma to take the plunge or wait for better developments The caselet enables a discussion on the dilemma of opting for the purchase or to continue with the present stance.

Expected Learning Outcomes

  • • The basics and application of Decision Tree Analysis
  • • The concept of Expected Monetary Values (EMVs)

 

Preconceptual Understanding and Before the Classroom Discussion

The participants were asked to read the following chapter given as mandatory reading at the end of the caselet to participate effectively and to enrich the learning outcomes:

  • • Jay Heizer, et al., “Quantitative Module A: Decision-Making Tools”, Operations Management, 9th Edition, Pearson Education, 2008
  • • Richard I. Levin and David S. Rubin, “Chapter: Decision Tree Analysis”, Statistics for Management, 7th Edition, Pearson Education, 2008

 

Case Positioning and Setting

This caselet can be used in MBA/Executive MBA program for Operations Management course to illustrate the concept of ‘Decision Tree Analysis’ and exemplify its implications.

Assignment Questions

  • I. Taking the time value of money into account, find the NPV of the project with a discount rate of 10%.
  • II. Determine the best decision using each of the decision criteria: Maximax, Maximin, Minimax regret, Hurwicz and Equal likelihood.

 

Suggested Orchestration

The classroom discussion and analysis for this caselet could be summarized and facilitated under two broad sections [Exhibit (TN)-I].......

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Abstract


This caselet is meant for learners pursuing course in Operations Management. This caselet enables an understanding of the application of Decision Tree Analysis. The caselet provides a brief about the dilemma of purchase for Anup Joshi (Anup), the founder of Arvind Textiles. Arvind Textiles was established by Anup, a textile engineer in mid-2014. The company manufactured T-shirts, which involved various stages like dyeing, cutting, design printing, stitching, checking of quality, ironing and finally packing. The process takes a stipulated amount of time at each stage. However, being a startup the process of the company was not automated and considerable amount of workforce was involved. Anup was considering to buy a textile store to improve the company's processes to be effective and efficient, nevertheless as the company was in a nascent stage he was in a dilemma to take the plunge or wait for better developments The caselet enables a discussion on the dilemma of opting for the purchase or to continue with the present stance.



Pedagogical Objectives

This caselet helps the students to understand:

  • The basics and application of Decision Tree Analysis
  • The concept of Expected Monetary Values (EMVs)

Case Positioning and Setting

This caselet can be used for MBA, Executive MBA or Executive Development Programs to highlight Operations Management Course – Quantitative Module A: Decision trees – To understand the decision tree concept and analyze how it can help in effective decision making.




This Case Pack Includes:
 - Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
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