Operations Management Case Study

Inventory Management through ABC Analysis – A Case Study for Super Sounds Inc.

OR

Abstract:
Super Sounds, Inc. (Super Sounds) is a leading speciality retailer founded more than 60 years ago in Cleveland, Ohio. The store provides a vast array of items to inspire accessories of all kinds. The company aims to meet its customers’ needs not only with its products but also with the services and advice to help with their needs. Thus, customer service is an essential element of Super Sounds’ successful retail model.

The shop is in a storefront location on a busy street and it has limited storage space for inventory. Recently, as demand for its few products has increased, management has had difficulty in managing the inventory. They frequently run out of some crucial products but seem to have endless supply of others. Hence the management of Super Sounds understood the value of managing inventory to satisfy customers and to bring down inventory costs. Obviously, having excess inventory will have huge inventory costs. To reduce costs in an inventory system, the focus should be on certain important high valued items. In this context, a management trainee provided a solution to the problem, by suggesting ABC analysis for their needs. This ABC classification process helped manage the inventory properly. The implementation of the ABC Analysis became a key element of supply chain and inventory management across Super Sounds stores.

Pedagogical Objectives:

To understand the basics of inventory management
• To discuss how ABC analysis is used in managing inventory.

Keywords : Inventory Control, Classification of Inventory, ABC Analysis

Contents:

• Introduction
• Suggested Questions for Discussion