EMMICO has just acquired one of its suppliers and is rapidly shedding employees as it goes about trying to integrate the companies and the supplier’s legacy system. The organization has asked a Tauber Institute for Global Operations intern team to seek solutions to the operations problems facing the newly organized company. The team is tasked with increasing the company’s economic value index by increasing inventory turns and eliminating an external warehouse. They have a tough road ahead.
EMMICO: How to Improve Inventory Turns
by: Prakash Sathe
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After reading and discussing the material, students should:
- Overcome issues with quality-blocked inventory.
- Improve the incoming material inspection and material flow.
- Explore ways to turn inventory stored as customer returns.
- Decrease inventory stored as samples.
- Mitigate issues relevant to slow-moving inventory.
- Achieve a lean material flow.