Question

In 2006, Lego laid off 1,200 workers and ended production in the U.S.. The company contracted out production of basic Lego bricks to Singapore-based electronics manufacturer Flextronics, which operates factories in Mexico and eastern Europe. Which two of the ten operations management decision types were addressed by this decision

Answer 1

Question  Completion:

Ten Operations Management Decision Types:

a. Design of goods and services

b. Managing quality

c. Process and capacity design

d. Location strategy

e. Layout strategy

f. Human resources and job design

g. Supply chain management

h. Inventory management

i. Scheduling

j. Maintenance

Answer:

Lego

The two types of operations management decisions that were addressed by Lego's decision to end production in the US are:

d. Location strategy

g. Supply chain management

Explanation:

Lego decided to close its production facilities in the U.S.A because of the shifting customer demand.  There has been a growing demand for electronics by children as against plastic toys.  This is why it was able to contract out its production activities to a Singapore-based manufacturer with factories in Mexico and eastern Europe.  So the company is strategically moving its production to countries that have high demand for its products and, at the same time, enjoying some tax benefits.