The learning outcomes are as follows:
to generate insights about the importance of inventory management for a business;
to make students understand the ABC classification of inventory management for effectively managing it;
to make students learn the Economic Order Quantity (EOQ) model and its underlying assumptions; and
to make students learn the supplier relationship strategy by implementing a purchase–portfolio matrix.
Linx Printing Inc., a printing company based in India, was inherited by Aman Aggrawal from his father in 2019. Witnessing the declining sales of his company, Aman was worried about the survival of his father’s business legacy. He faced significant challenges in navigating a fast-changing and increasingly competitive printing industry. He then decides to take the help of Ravi Mathur, an operations consultant, to find out the real cause of stagnating profits. This case shows how poor inventory management impacts a company’s existence in a highly competitive landscape. Students will be asked to perform the ABC classification of inventory management, determine economic order quantities and calculate the total annual cost associated with managing inventory. Furthermore, they would also be asked to discuss a supplier relationship strategy by implementing a purchase–portfolio matrix for different types of raw materials.
The case is suitable for courses such as operations management and operations strategy at the MBA and executive education levels.
Teaching notes are available for educators only.
CSS9: Operations and Logistics
