Global Alliance for Trade Facilitation: The Scaling Decision - Teaching Note

Learning Objective

The case can be used in any inventory management course, be discussed in a financial management course, or form a part of a discussion about inventory management in a management accounting or cost accounting course. The case is best used after covering various inventory management techniques. It will help students recall those techniques and consider how each technique might apply in the given situation. Unlike manufacturers or retailers, wholesalers—in the middle of the supply chain—base their business almost solely on inventory management and margins. The case profiles the financial standing of and issues faced by such a wholesaler, this one in the utensil and kitchen appliance wholesale business. Working through this case will allow students to do the following:

• Understand the impact of inventory mismanagement on a company’s financials.
• Analyze the financials related to inventory management.
• Discuss inventory management techniques and choose the technique that best suits the given business dynamics.