Wilkins, A Zurn Company: Aggregate Production Planning

Case Solution

Eric Olsen, Carol Prahinski, Jenni Denniston
Ivey Publishing ()

The general manager of the Wilkins facility in Paso Robles, California, received instructions from headquarters to reduce inventory by 30% in the next quarter. Although inventory had accumulated over the past few years, this was seen as a benefit to the company for a number of reasons. On the one hand, raw material costs increased in the last year. The second reason is that the company does not pursue layoffs, so the inventory allows it to minimize the use of overtime and temporary workers. The general manager wondered if reviewing the production planning process would be enough to solve Wilkins’ warehousing problems.

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