CASE ANALYSIS 5 Available to Purchase

What is the problem at the Zatega Division of Matheson Foods? The attention of the managers involved is focused upon the large number of overflow warehouses, the dispute over the use of available plant storage space, and the relatively high levels of both raw materials and finished product inventory levels. Of these concerns, the question of inventory levels appears to be of least concern to the participants, since we are given a number of rationalisations for this “problem”, (expanding markets, preparation of new plant, problems of raw materials quality control). As a consequence of their (conflicting) concerns over these matters, the managers also face the problem of a high level of tension and interpersonal conflict.