New Balance Athletic Shoes - A case study for operation management

Operations Management and Management Science Case Study Capacity Planning New Balance Athletic Shoes Summary James Davis is the president and general manager of New Balance Athletic Shoes. The Boston, Massachusetts based company began producing corrective shoes and arch supports in 1906. New Balance garnered a reputation for quality specialty footwear when in the 1950's it began producing running shoes for men. It is the beginning of 1978 and Mr. Davis has a number of important decisions to …

…on the location of the production facility. If New Balance would like to increase market share in regions other than its own it should seriously consider a more westward production facility. 4. After taking both financial and non-financial aspects into consideration, the opening of a Texas facility is recommended. Another benefit of having an additional production facility located in Texas will be the company's ability to fulfill the previously mentioned lack of western regional market share.