Inventory Planning at AB Corp., Applying ABC Classification

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This caselet focuses on the concept and application of ABC Analysis, an inventory classification and control technique. AB Corp., is a fast growing agriculture tools and farm equipment manufacturing company in Gondia, Maharashtra. AB Corp., owing to the issues faced in the erratic supply of spares and components during the peak season production, desired to take a call to manage their inventory in a much more professional and organized manner. The Store Manager, Abhinav Tomar (Tomar), of AB Corp., was asked to resolve the problem of classification and categorization of the inventory. After a lot of consideration, Tomar, decided to apply ABC Analysis to find a solution. Can ABC Analysis solve the problem of classification of the inventory items to make the inventory planning and control more effective and efficient?

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INVENTORY PLANNING AT AB CORP., APPLYING ABC
CLASSIFICATION
This caselet focuses on the concept and application of ABC Analysis, an inventory classification and control
technique. AB Corp., is a fast growing agriculture tools and farm equipment manufacturing company in
Gondia, Maharashtra. AB Corp., owing to the issues faced in the erratic supply of spares and components
during the peak season production, desired to take a call to manage their inventory in a much more professional
and organized manner. The Store Manager, Abhinav Tomar (Tomar), of AB Corp., was asked to resolve the
problem of classification and categorization of the inventory. After a lot of consideration, Tomar, decided to
apply ABC Analysis to find a solution. Can ABC Analysis solve the problem of classification of the inventory
items to make the inventory planning and control more effective and efficient?
Pedagogical Objectives
• To understand the concept of ABC Analysis for better inventory control
• To discuss the steps in ABC analysis and how to infer results of ABC classification
Case Positioning and Setting
This caselet can be used in either MBA or Executive MBA or Executive Development Programs, for the
following module/topic in the Operations Management course:
• Inventory Management: ABC Analysis
ABSTRACT
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Inventory Planning at AB Corp., Applying ABC Classification

1. INVENTORY PLANNING AT AB CORP., APPLYING ABC CLASSIFICATION This caselet focuses on the concept and application of ABC Analysis, an inventory classification and control technique. AB Corp., is a fast growing agriculture tools and farm equipment manufacturing company in Gondia, Maharashtra. AB Corp., owing to the issues faced in the erratic supply of spares and components during the peak season production, desired to take a call to manage their inventory in a much more professional and organized manner. The Store Manager, Abhinav Tomar (Tomar), of AB Corp., was asked to resolve the problem of classification and categorization of the inventory. After a lot of consideration, Tomar, decided to apply ABC Analysis to find a solution. Can ABC Analysis solve the problem of classification of the inventory items to make the inventory planning and control more effective and efficient? Pedagogical Objectives • To understand the concept of ABC Analysis for better inventory control • To discuss the steps in ABC analysis and how to infer results of ABC classification Case Positioning and Setting This caselet can be used in either MBA or Executive MBA or Executive Development Programs, for the following module/topic in the Operations Management course: • Inventory Management: ABC Analysis ABSTRACT © www.etcases.com

Inventory Planning at AB Corp., Applying ABC Classification

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