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Product cover image for Agrawal Kitchenware Distributors: A Miscellany of Inventory Problems

Agrawal Kitchenware Distributors: A Miscellany of Inventory Problems

Samriddhi Dhasmana, Sandeep Goel

Product #:W26014
Supplier:MDI/Ivey
Discipline:Accounting, Finance
Setting:India, 2020
Details:Case (PDF) • 8 pages • 2022-06-07

Subjects:

Inventory managementOperations and supply chain managementFinance and investingAccounting

Industries:

Goods, trade, and consumer services

Geography:

AsiaIndia
Your Price:$9.71

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A recent master of business administration degree graduate, had discovered a problem with inventory management in her family’s business. Agrawal Kitchenware Distributors (Agrawal), a wholesaler and distributor of kitchenware items, appeared to be well-off according to its financials, but when she had toured the company’s warehouse, she discovered several problems with the inventory, and there was no management system that could identify, track, or resolve the inventory problems. Because Agrawal was a family business, the changes needed to be acceptable to both brothers who owned and managed the business, and the changes needed to be fairly simple to implement and maintain. What inventory management technique would be suitable in these circumstances?

Learning Objectives

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.
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Case Study: Agrawal Kitchenware Distributors: A Miscellany of Inventory Problems (English version) | Ivey Publishing