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Operations Management Case Study

Case Title:

Reduction in Expenditure using Single-Period Inventory Model: A Case Study for PGS

Publication Month and Year : December 2009

Authors: Dr. V. Srinivas

Industry: General Business

Region: India

Case Code: OM0020

Teaching Note:  Available

Structured Assignment: Available


For the past one decade, Partha Green Solutions Private Limited (PGS), a renowned consulting firm in India is providing its remarkable services to industrial sector. Recently, the company has planned to organise a nation level training programme in climate change. Ram Mohan(Mohan) the director of PGS, intended to organise the programme in a cost-effective method without comprimising the quality. He realised that estimating the training demand i.e., expected number of participants is the key factor in organising the programme successfully. In such type of situation, the expected participants’ number is unknown. It is helpful in making necessary arrangements and minimising the expenses. He identified and adopted Single-period inventory model through which he maximised the profits by reducing the expenses. Accordingly, he made arrangements and completed the programme with minimal expenses and received appreciation from everyone.

Pedagogical Objectives:

      This case study can be used for understanding :
  • Inventory Control and Inventory Costs
  • Single-Period Inventory Model (SPIM)
  • Reduction in expenses with SPIM.

Keywords : Inventory Control, Single period inventory model, Reduction in total costs, Probability, Demand estimation, Overestimated, Underestimated


  • Introduction
  • Estimation of the Probability of Selling of the Product
  • Suggested Questions for Discussion

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