Scientific Glass, Inventory Management Case Questions

1. What is the cause of the inventory growth at Scientific Glass? Briefly discuss the role of the sales team on inventory costs.

The cause of the inventory growth at Scientific Glass

2. The company is considering the following proposed solutions: 1. Implementation of the proposed policy changes, 2. Centralizing the Warehousing Operation, and 3. Outsourcing the warehousing to Global Logistics. Create a table with three columns. The first heading should be “proposed solution,” the second should be “positives” and the third should be “risks/concerns.” Place your concerns and positives in the appropriate space addressing these three possible solutions.

3. Come up with another solution to solve the excess inventory problem outside of the three that the company is considering. As you did for the above question, concisely cite the positives and negatives of choosing your solution.

Bonus Question

If Scientific Glass achieves a 20% growth in sales in 2010, but does not reduce the number of months of inventory it maintains, the company will have to increase its investment in inventory by how much by 2010? The planned expanding its network of international distributors in 2010 would require an additional X million$ in inventory?