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Inventory Management Using ABC Analysis @ Darling Digital

CASELET, OPERATIONS MANAGEMENT
ET Cases, 2 pages

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Inventory Management using ABC Analysis@Darling Digital

 

Darling Digital Pvt Ltd. (Darling Digital), a leading electronics retailer, founded in 2010 by Manish Agarwal (Manish) had nearly 25 employees in more than five stores and multiple distribution centres. With five locations across India, Darling Digital provided home theatres, sound surround systems, headphones, speakerphones and other video and audio accessories. The chain aimed to meet its customers’ needs with its products and with the aftersales services. Thus, customer service became an essential element of Darling Digital’ successful retail model.

The store was located on a busy street in Bangalore and it had limited storage space for inventory. The founder, Manish, observed that demand for few of its products increased while demand for few of its products decreased. Demand was irregular, however, Manish found it difficult to manage the inventory. They frequently ran out of some crucial products but seemed to have endless supply of others. In addition, due to improper inventory management, inventory costs also increased..................

Teaching Note Preview

Inventory Management using ABC Analysis@Darling Digital

 

Prerequisite Conceptual Understanding

  • • Jay Heizer, et al., “Chapter 11: Inventory Management”, Operations Management, 9th Edition, Pearson Education, 2008

 

Synopsis

This caselet is meant for individuals/participants/scholars pursuing course in Operations Management. It enables a discussion on the concept of inventory management and its applications. The concept is discussed using the backdrop of Darling Digital, a specialty retail chain which is present across the country and the store adopting ABC Analysis in order to manage its inventory effectively.

Expected Learning Outcomes

At the end of this caselet discussion, the participants are expected to know:

  • • The basics of inventory management
  • • How ABC analysis is used in managing inventory

 

Assignment Questions

  • I. What is meant by ABC Analysis? Elaborate.
  • II. How did Tanveer analyze Darling Digital’s inventory using ABC Analysis?

 

Teaching Plan

This Teaching Note follows a sequential order as presented in the Teaching Plan [Annexure (TN)-I].............

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Abstract


This caselet is meant for individuals/participants/scholars pursuing course in Operations Management. It enables a discussion on the concept of inventory management and its applications. The concept is discussed using the backdrop of Darling Digital, a specialty retail chain which is present across the country and the store adopting ABC Analysis in order to manage its inventory effectively.



Pedagogical Objectives

  • To understand the basics of inventory management
  • To discuss how ABC analysis is used in managing inventory



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- Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
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