Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 24.10.2002
Length: 6 pages
Data source: Generalised experience
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Abstract
This case describes a value-chain situation where inventory stocks and flows need to be managed more effectively. At the moment, the situation is one of sequentially-linked, independent-demand inventories, each managed by an unique order-point or reorder-time system. The case asks the student to understand how products move (or don't move) through such an extended value-chain, from the Netherlands to Japan, and how such a system might be made to work more effectively. Unlike the original case, the DRP argument is not developed in this case, but is available for application, if the students think it through. The purpose of the case, however, is to take an existing materials-flow system and to diagnose its problems and leave a wide-open opportunity for improvement. The situation is slightly complicated by an alliance with a local distributor.
About
Abstract
This case describes a value-chain situation where inventory stocks and flows need to be managed more effectively. At the moment, the situation is one of sequentially-linked, independent-demand inventories, each managed by an unique order-point or reorder-time system. The case asks the student to understand how products move (or don't move) through such an extended value-chain, from the Netherlands to Japan, and how such a system might be made to work more effectively. Unlike the original case, the DRP argument is not developed in this case, but is available for application, if the students think it through. The purpose of the case, however, is to take an existing materials-flow system and to diagnose its problems and leave a wide-open opportunity for improvement. The situation is slightly complicated by an alliance with a local distributor.