In 2016, New York City was introduced to Oat Milk. This environmentally friendly product has no added sugar, and less water. However, its popularity has grown so fast that New York City has run out. Oatly, the company that makes Oat Milk, can’t keep up with demand.
It’s the second most popular milk alternative in Europe. Similar shortages have occurred in Sweden and the U.K.
Video Spotlight: The Latest Trend: Oat Milk
This post is based on the New Yorker article, Hey, Where’s My Oat Milk?, by Antonia Hitchens, August 6 and 13, 2018; and the YouTube video, The Latest Trend: Oat Milk, by The Doctors, April 4, 2018. Image source: © SDM IMAGES / Alamy.
1. What operations management concepts should Oatly re-evaluate in regards to this shortage?
Guidance: Obviously, Oatly should look at their forecasting methods. The company was unprepared for the rapid increase in Oat Milk’s popularity. This would be a good place to talk about different types of forecasts. One of the problems is that this is a new product. As a result there is a lack of quantitative sales data.
Capacity planning would be Continue reading