Inventory Management in Wheeled Coach. Case Study Example.

Paper Type:  Case study
Pages:  3
Wordcount:  633 Words
Date:  2021-06-25

Why is accurate inventory such an important issue at Wheeled Coach?

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Wheeled Coach is the largest manufacturer of ambulances, and the complicated nature of the company means that it controls vast inventory. Inventory is so essential to control since it leads to a lot of issues such as overbuying and misplacement. The inventory at Wheeled Coach was not being managed well, and there was excess that was piling up which led to on creased cost of operation. The company manufacture ambulances and claims to be the largest producer of such product require having an accurate inventory of its material due to some reasons. The most vital reason is for Wheeled Coach to manufacture ambulances at the level that will fulfill the demand of customers. The fact is that the company relies on every client needs while producing ambulances, as such, the company needs to ensure that all their materials are available to deliver the said order.

Accurate inventory further allows the company to make good on their promise to their customer. Wheeled Coach can provide the order that is needed by the customers and delivers them on time and hence creating a good relationship with its clients. Also, accurate inventory will result in reduced storage cost. The cost that is related to storing of material is reduced since the company can only store materials as per the market demand. Lastly, accurate inventory will apprise other departments within the company and allow them to plan accordingly (Ozer,2011).

Why does Wheeled Coach have excess inventory, and what kind of plan would you suggest for dealing with it?

The company is a subsidiary of another company, and the can consider the probability of selling or having material that is in excess to the parent company; however, they should ensure that more materials are available to sustain the operation. To achieve this, Wheeled Coach can carry out an extensive demand forecast to make sure that the materials that remain can meet the current demand. Alternatively, there should be flexibility in such a way that in case there is fluctuation; the mother company can take back the material to Wheeled Coach or vice versa. Also, the parent company should provide its support to its subsidiary by ensuring that they have the much-needed material by agreeing that wherever they have the inventory of material which is access the material can be delivered between the two faster as compared sourcing from suppliers.

Suggestions for Reducing Inventory and How to Implement Them

To improve or reduce or the amount of inventory stored, the company should introduce an inventory system that that monitors the level of materials the company uses. This can be a successful means of dealing with such a problem in big manufacturing companies such as Wheeled Coach. The company should ensure that all types of materials that have been carefully studied and well categorized. The system users should be well trained to avoid random errors, and training can be provided by the installing firm. The company should be done with the best effort to ensure that users are knowledgeable about the system. This is essential since the system provides the company with information that valuable for decision making and planning and at the same time, proper data must be put into the system by users. Furthermore, the company should set a technical department that will be mandated with a provision of technical support at early stages before employees get used to it (Ogbo & Ukpere,2014).


Ogbo, A. I., & Ukpere, W. I. (2014). The impact of effective inventory control management on organizational performance: A study of 7up bottling company nine miles Enugu, Nigeria. Mediterranean Journal of Social Sciences, 5(10), 109.

Ozer, O. (2011). Inventory management: information, coordination, and rationality. In Planning Production and Inventories in the Extended Enterprise (pp. 321-365). Springer US.

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Inventory Management in Wheeled Coach. Case Study Example.. (2021, Jun 25). Retrieved from

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