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Reference no. 616-0082-1
PRS Sarma (Indian Institute of Management Raipur)
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Revision date:
7 pages
Data source:
Field research


This case is designed to make the students or participants understand how to analyze the issue of improving profits through proper inventory management by implementing adjusted economical order quantity under uncertainty in demands that has a considerable impact on cost saving to companies and profit maximization. Specifically this case introduces students or participants to the concept of 'Inventory Management' in making decisions in a business. This case centers on the need of Reeta Stores to quickly focus, study, diagnose and discover a solution for an optimal order quantity foe inventory and suggest a possible solution to Reeta Stores, so that they can control on costs related to ordering, inventory carrying and the total costs and regain the customer count while avoiding problems of loss of customers resulting in low profitability in the future business. The case highlights the importance of inventory in a supply chain and suggests the vital component in the inventory management is the order quantity. This is a comprehensive case which provides exposure to students across various dimensions of economic order quantity for managing inventory under uncertainty of demand. This case is an easy introduction to Supply Chain Management, Operations Management, Quantitative Methods in Management, Production Engineering, Decision Analysis, and oversight to students of Post Graduate in Management Studies viz, MBA, Executive-MBA, PGDM and PGPEx etc, and executives. This case is aimed to deliver the essentials of capacity utilization problems and its importance in decision making.


Supply and demand management; Inventory management procurement; Supply chain management (SCM); Operations and supply management; Decision analysis

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