DESCRIPTION: EMMICO has just acquired Franz Kuerten and is trying to integrate its Vienna plant operations. The problem is the company is storing too much inventory at the plant and its off-site warehouse — up to five times the amount it needs for regular production. To hit the inventory sweet spot, student interns from the Tauber Institute for Global Operations at the University of Michigan are tasked with using two models to calculate economic order quantity. They will have to report their findings in a week.
After reading and discussing this case, students should be able to:
- Examine the case problem using the continuous review model.
- Provide a solution to the case problem using the up-to-a-level model.
- Determine which is the best solution.
Secondary Tags: Business and Society; Innovation
Sales Rank: #451