Case Study

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Case Study

Case Name: Reading the Tea Leaves at Tea and More: Resolving Complex Supply Chain Issues

       I.            Major Facts

In 1985, three sisters and tea enthusiasts started Tea and More (TAM). Following the demise of one of the founders, the rest opted to sell the enterprise, leading to their then CPA Jack Reynolds acquiring it.

    II.            Major Problem

The primary issue facing TAM is stock outage resulting from unpredictable order patterns and increased lead time.

 III.            Possible Solutions

A.    TAM can adopt a Just-In-Time (JIT) system. One advantage of this approach is that it will let the firm makes orders at the moment of need; however, it has a disadvantage of adaptation failures to a sudden increase in demand since it advocates for low-level inventory.

B.     TAM should have safety stock. Through buffer stock, the company will address changes in end-users’ demand; however, this technique will increase its storage costs.

C.     TAM can implement the Vendor Managed Inventory (VIM). Using VIM will enable it to supply steadily; nonetheless, it will require that it surrenders some of its inventory management roles to its supplier, Earl and Morgan Limited (EML).

 IV.            Choice and Rationale

Adoption of a JIT system will be the most feasible solution to TAM’s stock outage challenge as it also incorporates the other alternative resolutions. According to Pérez and Torres (2019), these systems strengthen efficiency in inventory management. Under JIT approaches, in its Cleveland facility, TAM will only package blended teas only as required, instead of building up stocks for future demand. It will ease the need for the business...