Locating International Production - How Lego Responds to Highly Seasonal Demand
A superb, short video here featuring an interview with the CEO of Lego who explains how careful choice of international production location helps Lego address highly seasonable and unpredictable demand during the crucial Christmas trading period.
With around half of Lego's sales made in the 6-8 weeks before Christmas, it is essential that Lego has sufficient stocks and capacity to meet peaks in demand.
It has invested heavily in its four factories recently, locating them closer to the main sources of customer demand (US, China, Europe) which has a result has reduced the lead time if production needed to be changed to meet unexpected increases in demand.
A great example of careful production planning and the choice of location for production capacity.