Contents

• Introduction 3
• MITSI 3
• Supply Chain Management of MITSI tyres 3
• (A) Inventory Reduction Program 4
• Reasons of Inventory rising to the level 4
• Target For Reduced Inventory Level 4
• Inventory Reduction Program 5
• Timing Details Of Inventory Reduction Program 7
• (B) Long Term Issues 8
• Calculate Order Quantities 8
• Forecasting 9
• Achieving Targets And Bonuses 9
• Maintaining Inventory 10
• Sales And Operations Planning 10
• Conclusion 12
• References 13

Description

This paper provides answers to the following questions on the case study –
You have been asked by the CEO of the parent company to prepare two reports:
(A) The first report, for the CEO’s personal review, is to cover your inventory reduction program:
1. Describe in detail how and why the inventory rose to its present level.
2. Define your target for a reduced inventory level and provide details as to why this level is appropriate.
3. Provide a detailed, step by step action plan for your inventory reduction program. This should cover what will be done, how it will be done and who will do it.
4. Provide detailed timing for each step listed in part 3 of this report.
(B) The second report, also for the CEO’s personal review, is to cover longer term issues. This report should cover issues such as:
1. How to calculate order quantities.
2. Forecasting.
3. Achieving the Goodmich targets and bonuses
4. Maintaining inventory at the target level (set in the first report)
5. Sales and Operations Planning and any other important matters.