Expand mobile version menu

Inventory Control Manager

Real-Life Activities

Real-Life Decision Making

Modern inventory control managers try to keep as little inventory on hand as possible. They also purchase raw materials at their lowest possible price and sell stock at its highest.

This reduces overhead, saves on taxes and still allows products to reach their destination on time. The practice relies on a smooth flow of accurate information and on good decision making.

You are the inventory control manager for a video game software company. Your company is preparing to launch its latest video game, Mars Launch, in five months.

As part of your duties, you order 150,000 blank video game cartridges (the plastic cases that will hold your game's chips). You schedule delivery for four months from now. That means the items will sit in your company's warehouse for no more than one month.

But when you call to order the cartridges, your supplier informs you that he has a glut of them on hand. He is willing to sell you the cartridges at a 15 percent discount as long as you take delivery of them immediately. He needs to know before the close of business today.

You give it some thought. Your company doesn't have much room in the warehouse now. But it could offer a sharp discount on existing video games immediately in order to free up the space in as little as one week.

What do you do?