Part (I) — A Company consumes huge quantities of certain packaging materials in-house, while
making deliveries to its customers. Even though aforementioned items are non-
inventory, an OOS (Out of Stock) for these items has a direct impact on customer
satisfaction. Currently, that company is ordering these items from multiple suppliers at an
undefined frequency and the price is non-competitive in terms of the scale of total
demand. Moreover, the company is facing delivery delays from vendors for some of this
packaging material:
? (I-A) — What can you do internally to ensure ZERO Out of Stock?
? (I-B) — What would be a strategy to reduce the cost of these items?
making deliveries to its customers. Even though aforementioned items are non-
inventory, an OOS (Out of Stock) for these items has a direct impact on customer
satisfaction. Currently, that company is ordering these items from multiple suppliers at an
undefined frequency and the price is non-competitive in terms of the scale of total
demand. Moreover, the company is facing delivery delays from vendors for some of this
packaging material:
? (I-A) — What can you do internally to ensure ZERO Out of Stock?
? (I-B) — What would be a strategy to reduce the cost of these items?
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