CASE: Managing Supplies for Free Shoes for Kids Free Shoes for Kids is a shoe manufacturing… 1 answer below »

CASE: Managing Supplies for Free Shoes for Kids

Free Shoes for Kids is a shoe manufacturing company with a heart. The firm originated five

years ago when its founder saw that many children around the world had to go barefoot as

shoes were either not available or cost-prohibitive to obtain. As such, the founder decided to

establish a shoe manufacturing, distribution and retail sales firm. The commercial side of this

business supports the real desire to help the needy children have a pair of shoes to wear. The

firm’s position is that for every pair of shoes they sell, it will give one pair to a needy child.

To achieve this objective, the company must contain its costs and achieve the highest level of


Since the firm started, its offices, manufacturing facilities, and retail outlets have been

concentrated in the United States. As the needy children are global in nature, the firm’s


founder is trying to decide if it could establish a second manufacturing and distribution center

in the Pacific Rim. The Pacific Rim distribution center would focus its attention on needs

within this geographic region while the US location would focus its attention on the rest of

the global need.

The firm has acknowledged that the true demand is beyond its ability to meet in any single

year. Thus, they must limit the number of shoes that go to the needy children to the number

of shoes that are sold. The following table identifies the number of shoes that have been sold

since the firm was formed.


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