Indian Institute of Management Kozhikode

Assignment
on
Operations Management

Submitted to Submitted by
Dr. Sidhartha S. Padhi Aditya Veer Singh Rana
Faculty of Operations management EPGP-11-133
 Scientific Glass Inc.
Company Info

It’s a Private firm, a midsize company Works in the domain of specialized

with $86.3 million in net sales, $ 6.5 glassware. Founded in 1992. Market
million in net earnings. Global sale of in US, Europe, Asia Pacific Region.
3 to 5 % annual growth.

Having more than 3000 standardized

products and custom glassblowing services
for various industries related to hospitals,
laboratories and clinical research facilities.
 They have twin goals

• Continued sales growth

• High customer satisfaction

Both are imperative for them simultaneously.

Strengths Weak points

1. Research and development,
innovation and creative design.
2. Good sturdy products
3. Amazing customer service
4. Creative product design
5. Durable and lower life cycle
1. Inventory is very high
2. Capital needed for growing
operations
3. Dept /capital =40%
4. Poor management - inventory
 Potential and Hiring of Manager
Opportunity for future
1. Increase market share
2. To provide good high services
3. Innovation design thinking
4. Globally expansion around the world
They hired new manager Ava Beane
Manager of inventory control
(observations)
1. Set very high expectations
2. A lot of warehouses to manage
3. Service level of 95% approx
Threats at present
1. Copy of products by competitors
2. Focus on innovation design
3. Focus on global expansion
4. Back order removal
5. Increased low-end
Inventory ending reasons:
(observations)
1. Warehouse manager ordering extra
2. Trunk stock
Lack of proper inventory management
 Good management
Effective ways
1. Decentralizing with winged fleet, 2. Centralizing with winged fleet, 3. Global
logistics outsourcing

Source :HBS SG Case Study

Calculations

Calculation done. Image attached.

 Calculations
Statistical data Total shipping cost =
Total orders in year 2009 119855 (Centralize warehousing
Waltham to Atlanta (GL) in Waltham) $468262
Average weight for shipment 10 Pounds

Cost of shipping from factory to GL Atlanta 1170656

warehouse ($ 0.40/16)

Even distribution 119855 119855

of orders per 𝟓 𝟑
region, total orders 23971 39952

Shipping cost for GL and WF 5 Regions 3 Regions

South East 16.69 400075.99 199760
North East 18.91 453291.61
Central 22.25 533354.75 479424
South West 24.48 586810.08
North West 25.59 613417.99 639232
2586950.42 1318416
Total 3055212.42 1786678
Decision for 3rd GL: focus on Customer needs, sales, next gen products, new protocols for
management.

1. Decentralizing with 2. Centralized warehouse 3. Centralized with global

winged fleet - WF with winged fleet - WF logistics - GL

Advantage Advantage Advantage

1. Saves time, efficiency 1. Serve pool inventory 1. Discontinued rates
2. Reduction in customer 2. WF offers fixed rates 2. Warehouse rental
response time covered
3. Insurance and delivery
cost covered
4. Operating costs in
Atlanta covered

Disadvantage Disadvantage Disadvantage

1. Annual inventory 15% 1. Good increment in 1. Annual inventory 15%
2. Unnecessary high customer response 2. Unnecessary high
service 2. 2 week in cycle & 1 service
3. 2 week in cycle & 1 week in transit 3. 2 week in cycle & 1
week in transit 3. 3 day shipping week in transit
4. 3 day shipping 4. 3 day shipping