Caterpillar(R) in Europe: Inventory Reorder Policies

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Case

Reference no. 602-019-1

Subject category: Production and Operations Management

Authors: Michael Pich (INSEAD); Ludo Van der Heyden (INSEAD)

Published by: INSEAD

Originally published in: 2002

Version: 04.2015

Revision date: 5-Apr-2016

Length: 26 pages

Data source: Published sources

Topics: Inventory reorder policies; Continuous review inventory policies; Economic order quantity; Spare parts management; Independent demand inventory

Share a link: https://casecent.re/p/8235

| No reviews for this item

This product has not been used yet

View our pricing guide or login to see prices.

Abstract

This exercise is designed to introduce students to (Q,R) inventory reorder policies, where Q is the order size and R the reorder point. The exercise is motivated by the issues faced by Caterpillar (CAT) in managing its parts warehouse in Europe. The Caterpillar example is based on information obtained from their website, but the numbers utilised in the exercises and assignment are fabricated to achieve the pedagogical objective.

Location:

Europe (Belgium)

Industry:

Heavy equipment

Size:

Large