Scientific Glass Incorporated: Inventory Management (Brief Case)

By: Steven C. Wheelwright and William Schmidt

Sign Up Now! Already a Member? Log In
You must be logged into Bookshare to access this title. Learn about membership options, or view our freely available titles.

Synopsis: Scientific Glassware is a fast-growing, privately held company that provides specialized glassware for laboratory and research facilities. Excess inventory is tying up extra capital needed to fund the company's expansion plans. The newly hired Manager of Inventory Planning is tasked with developing an effective strategy for managing inventory without requiring additional capital investment. The company has launched several initiatives, such as adding a dedicated domestic sales force, which directly affect inventory requirements. At the same time, the company has announced a commitment to improve customer responsiveness and reduce the "fill rate," the time it takes to fulfill new orders. These changes may require adding warehouses or outsourcing fulfillment services. This case focuses on the business challenges of inventory control and order processing, particularly the tradeoffs between centralized and decentralized inventories. Students must complete a quantitative analysis of the costs and benefits of several alternatives.