Kitchen: An Inventory Expansion Tradeoff

Abstract

The Kitchen case addresses a storage challenge facing an Egyptian company working in kitchenware, manufacturing competitive products within the industry in Egypt. The protagonist in the case must choose between alternatives to resolve inventory space challenges while considering the external factors affecting the industry. There are three alternatives: (1) to build a new injection factory; (2) to relocate the finished goods warehouse; and (3) to invest in new storage systems. Different stakeholders adopt conflicting opinions about resolving the storage space challenges; therefore, it was left to the protagonist to decide the optimal solution, considering his aspirations for company growth. Students will be asked to analyze the external and internal environments impacting the Felobater Group Company (FGC); they will also be asked about how to resolve the inventory challenge facing FGC and to evaluate different solutions in order to make a suitable decision.