Research Details

Abstract

In 2003, ITC responded to the high level of obsolete inventory by shifting risk from finished products to manufacturing and raw materials. This required that their supply chain be much more flexible and responsive than it was in the past. By 2006, changes in the supply chain that included moving manufacturing in-house improved flexibility and responsiveness. Obsolete inventory was significantly reduced and the company was much better at matching supply and demand. Cost, however, continued to be higher than that at third parties. The company had to decide on the appropriate tradeoff between cost and responsiveness when structuring its supply chain.

Type

Case

Author(s)

Sunil Chopra

Date Published

01/01/2007

Citations

Chopra, Sunil. Wills Lifestyle in India. Case 5-107-003 (KEL362).

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