Chinese Pharmaceuticals (HK) Limited: Effective Forecasting for Optimal Inventory Management

Case Solution

Ronald Lau, Joseph Santana Fernandez
The Hong Kong University of Science and Technology ()

Chinese Pharmaceuticals (HK) Limited, a privately owned Hong Kong family business supplying Chinese medical devices to retailers in Hong Kong and Macau, is faced with a situation where additional cash is needed for additional inventory. Jason Kwok, the general manager, is challenged to maintain adequate stocks of Noto37, a Chinese herbal medicine used to control cholesterol levels and blood pressure. Without affecting the cash flow needs of the business, Jason needs to implement better systems internally improving sales forecasting and prudent inventory management to avoid product bottlenecks.

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