Scientific Glass Inc.’s Inventory Management

Background and Overview of SG’s Current Challenges

For a company operating in the environment of the global economy, it is especially difficult to facilitate the creation of the environment in which the company’s inventory can be managed successfully. Scientific Glass, Inc. (SC) is not an exception to the identified phenomenon; according to the case study, the organization has been experiencing difficulties with the alignment of the processes associated with the overseas sales and distribution. The identified phenomenon can be easily explained by the lack of transparency in the processes that are implemented by the representatives of the company’s departments at different stages of the supply chain management process, especially when carrying out the actions related to the overseas transactions. Therefore, there is a strong need to introduce better visibility into inventory management in SG.

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Another issue that SG is likely to face when managing inventory in the context of the global economy is building a team of dedicated experts. Making sure that the newly recruited staff members follow the company’s policies closely and base their decisions on corporate values, ethics, and standards are essential. Thus, the firm will be able to promote loyalty among the staff members, at the same time creating the environment in which consistent quality improvement can become a possibility.

Finally, the issue of inventory control should be brought up. One of the trickiest tasks that SG is yet to carry out, the process of establishing a rigid system of inventory control requires a consistent quality improvement. Furthermore, to make sure that every single process is controlled appropriately, the managers will have to either compel the staff members to accept the corporate standards and rules so that no supervision should be needed or, on the contrary, establish a rigid system of supervising the employees and the crucial processes related to inventory management.

The issues outlined above pose an admittedly difficult challenge for the company to face. To handle the identified problems, SG will have to reconsider its current approach toward inventory management, as well as alter its policies in the SCM and even introduce improvements to the current leadership framework. Thus, the efficacy of information management and, therefore, the overall performance level of the organization can be improved (Kerber & Dreckshage, 2016).

Inventory Projections for 2010

At present, it is assumed that SG will be able to succeed as long as the appropriate measures for securing the SCM-related processes are taken. Particularly, with the enhancement of loyalty levels among the staff members and the subsequent improvement in the quality and speed of data transfer, one will be able to attain impressive results.

Inventory unit analysis Product
Number of units in inventory (beginning of period) 87
Production 2,321
Units available for sale 112,670
Units sold 11,267
Number of units in inventory (end of period) 101,403
Cost of goods sold analysis
Beginning inventory $3.652
Add: purchases 400,000
Cost of goods available for sale 403,652
Less: ending inventory 87
The total cost of goods sold 403,565
Inventory costing 41.98
Cost per unit (beginning of period) 00.00
Cost per unit (end of period) 41.98
Weighted average cost 3.57

As the table above shows, the current inventory forecast for SG is rather positive. However, the outcome can be improved successfully with the introduction of new tools for managing the financial operations and the processes within the company’s supply chain. Therefore, there is a strong need in addressing some of the transparency- and loyalty-related issues. As soon as the identified goals are accomplished, a rapid rise in the efficacy of the organization’s processes can be expected.

One must admit, though, that the process soft eh company’s recovery may take some time. Even though the effects of the newly adopted strategy will be evident within a relatively short amount of time, the actual transfer to a new system of SCM will take much more. Particularly, it is assumed that the changes to the firm’s design will become apparent in the next several months.

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Description of Possible Alternatives to Deal with the Inventory Problem

Apart from the approaches identified above, one may consider using the framework that allows balancing between a consistent improvement of technology and the efficacy of internal processes. There is no secret that successful management of the company’s inventory is related directly to the ability of the firm’s managers to use the available data efficiently, manage the schedule, and carry out the crucial financial transactions without any errors within a relatively short amount of time. Therefore, it is imperative to utilize all possible tools that create the environment for making the specified processes faster and reducing the number of errors made in the course of their completion. Thus, employees must be encouraged to use the available technology and train the skills required to operate the latest and the most advanced equipment. The incorporation of IT tools can be viewed as the means of enhancing the time management process since the identified tools allow coordinating the actions of the participants in a more efficient manner and, therefore, avoid the issues such as delays caused by misconceptions.

Apart from the promotion of IT in the target environment, one should consider possible issues associated with misaligned metrics, as well as the means of avoiding the identified issues. As stressed above, it is crucial to make sure that the measurement tools used to assess the productivity of the company remain efficient throughout the SCM process. Otherwise, the company is bound to face the instances in which it will take excessive costs. As a result, the supply chain will be under the threat of being disrupted, which, I turn, will lead to a significant drop in productivity levels.

Thus, SG can remain competitive and develop an efficient inventory management system. However, for this goal to be accomplished, it is crucial to redesign the company’s current approach toward managing the SCM process. Particularly, a focus on the consistent improvement of the related processes must be set. Furthermore, it is crucial to introduce the tools that will allow for a more efficient data management strategy. Particularly the use of IT devices as the means of enhancing the information transfer and avoiding the instances of misinterpreting information should be considered a necessity.

There is an array of ways of dealing with the inventory-associated issues at SG. However, in each case, a closer focus on the issues related to the SCM framework, in general, and the data management processes, in particular, is required. As soon as the premises for reducing the instances of misunderstanding or misinterpreting the information are created, a breakthrough is expected.


Kerber, B., & Dreckshage, B. J. (2016). Lean supply chain management essentials: A framework for materials managers. Chicago, IL: CRC Press.

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