Case Study : A Cat Corporation

1693 Words Jul 21st, 2016 7 Pages
Section 1: Introduction

Since 1986, A-Cat Corporation (the Corporation) has been serving a rural population in India as a leading producer of electrical appliances (Sharma, 2013). Over the past few years, the Corporation’s sales of its major product decreased, which caused alarm among the operational heads and executive staff (Sharma, 2013).
Historically, the Corporation held a policy of purchasing and retaining spares and components in its factory store, but due the lessening of sales of voltage regulators, some functional department heads challenged this policy (Sharma, 2013). To ensure a replacement inventory of the voltage regulator’s chief component, store managers secured spare transformers in vast quantities (Sharma, 2013).
Furthering issues, the Corporation lost three out of their four suppliers, and often, the Corporation received “rush orders” for product, but the last supplier required a week or more for product delivery (Sharma, 2013). Additionally, the supplier proposed a rise in prices for its own products if the Corporation could not guarantee consistency and stability in transformer ordering (Sharma, 2013). Lastly, capacity constraints of the supplier led to monetary delays in the Corporation’s cash reserves, which affected the procurement and inventories of other products’ spares and components (Sharma, 2013). The Corporation’s issues affected both internal and external stakeholders. Internal stakeholders are those within the company who profit…

More about Case Study : A Cat Corporation

Open Document