Stock-outs at 'Create Music Inc'

Comments

The case is designed to be presented to the candidate by an interviewer, who plays the role of a representative of a large American music company.

Short Solution

Key Question: What is the reason behind last season's unusual stockouts?

Answer: The high process variability and delays in the 'Artists & Content' phase are disrupting the supply chain and leading to product stockouts. The unusual circumstances and the variability of the creative process needs to be addressed.

Detailed Solution

I. Background

1. What kind of costs must be factored into each handoff in the supply chain?

2. Could you please describe all the supply chain phases in detail?

3. Why is there such high variability in the artists & content phase? Please explain this phase in detail.

II. Solution

'Artist & content' phase is the bottleneck of the supply chain. The high process variability and delays in this phase can disrupt the supply chain and lead to product stockouts.

This would cause a major problem during high demand periods, such as the holiday season.

III. Concluding Observations

The high process variability and delays in the 'Artists & Content' phase are disrupting the supply chain and leading to product stockouts. The unusual circumstances and the variability of the creative process needs to be addressed.

Difficult Questions

Please make a few recommendations to prevent this from happening in the future.

• The process of renewal of these contracts should be standardized
• Contracts with more artists and studios could be signed