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This case focuses on the incredible growth that Timberland Corporation has experienced since the 1970s, and how the growth has impacted Timberland's supply chain management and logistics systems. In the early 1970s, Timberland was a small New Hampshire-based company that manufactured rugged, high-quality shoes. As a result of the quality of its products, Timberland eventually attracted the attention of an overseas buyer and started selling in a foreign market. As the company expanded to additional overseas markets, its once simply logistics and supply chain management system became inadequate. In fact, the company found that its logistics system was literally breaking down under the strains imposed by its rapid overseas growth. In an attempt to address this problem, Timberland partnered with ACS, a freight forwarder, and The Rockport Group, a software house, to significantly improved its logistics and global supply chain capabilities. The company's efforts have been successful. Today, Timberland is able to deliver products to customers, in all of its foreign markets, exactly when they need them.
Question:
1. What caused Timberland's logistical problems?
2. What was the key to solving Timberland's logistical problems?
What is the break-even quantity? What is the total cost at break-even point?
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