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Alexander & Thurston:
Inventory Management
Product Type: Case  Publication Date: 11/2012  Product ID#: 1-429-293  Length: 8pages

Core Disciplines: Operations Management/Supply Chain; Strategy & Management

TEACHING NOTE: None

DESCRIPTION: The president and CEO of Alexander & Thurston has expressed the opinion that there is too much spare-parts inventory in the system. He believes that, through better inventory management, inventory can be reduced from its present level while customer service is improved. He has told the manager in charge of the DC in no uncertain terms that his job depends on showing tangible improvements in operating performance over the coming year.

TEACHING POINTS: 

  • Determine if the president right. Is it possible to have less inventory and a better fill rate?
  • Identify if the new policy is better than the old one.
  • Determine if there is there a better policy that the president could use that is practical to implement within the current information system.
  • Explain how the president should allocate inventory between the DC and the field. Is there a way to evaluate whether his current allocation is appropriate?

Secondary Tags: Customer Relationship Management
Sales Rank: #451


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