Scientific Glass Case

1828 Words8 Pages
Logistics and Supply Chain Management



In the case study of Scientific Glass case, the production, distribution and inventory management systems of the company Scientific Glass case have been discussed. Scientific Glass Inc, is a mid-sized company which was growing at a fast pace. The company is trying to resolve its inventory management issues as it is blocking a lot of working capital hindering the growth and expansion of the organization. This case study critically analysis the various alternatives for improving the inventory management system. The proposed alternatives have been evaluated and a final conclusion has been drawn.
The case analysis has been divided into 3 sections. In the first section
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Change in the warehouse structure
Change in the existing policies or implementation of new ones
Warehouse Structure

In order to change the warehouse structure the options of centralization, outsourcing were considered as opposed to the existing structure of decentralization.
Decentralized Structure with 8 warehouses: No changes would be required and the regional warehouses would supply their respective territories except in case of stock outs.
Centralization with one warehouse: Centralize the North American warehousing with one warehouse in Waltham by closing down the regional warehouses. In this way, the inventory requirements could be pooled to meet the demand.
Centralization with two warehouses: The demands of the West and the East could be pooled respectively and supplied from warehouses in each of these regions.
Outsourcing: Outsourcing the inventory function to Global Logistics who would be responsible for warehousing, inventory management, and order fulfilment (including picking, packing and shipping). This would enable the company employees to focus more on sales and expansion of the company while ensuring that the inventory management is in able hands.

Policy Changes

Some policy changes were proposed as an outcome of the brainstorming session:
Sufficient inventories only to meet customer fill rate of 99% and avoid surplus inventory
Discontinuation of trunk stock maintenance by sales executives
Daily reports and weekly summaries

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