Professional Documents
Culture Documents
Instructions:
Registered Teams will submit a case analysis/solution document comprising no more than 5 pages of single spaced, 12point font (including illustrations and excluding TOC, Cover page).
Along with the word document each team must submit a 10-slide presentation of the case analysis/solution suggested.
There is no pre-determined structure to analyse the case. Participants are free to use any format which best illustrates
and provides convincing arguments for their idea.
Wherever necessary, the participants must make references to the sources of information and data.
Case presentations will be judged based on the following criteria the originality, creativity and uniqueness of the idea
will receive the highest weightage; the implementability, sustainability and scalability of the idea; its fit with ITCs vision
and the manner in which it can leverage ITCs strengths; the thoroughness of research, analytics and economic logic
used to defend viability and execution of the idea.
Last date for submission of case solutions is 25th September 2013. Teams must send their entries to the email ID
provided for the campus.
For full details please refer to the Interrobang Season 3 Case Challenge Brochure available with your Campus Point of
Contact or contact interrobang@itc.in. The e-Brochure is also available at our Facebook page itchubnscope.
ITC Interrobang Season 3 Case Challenge: Curious Case of High Inventories and Low Availability
Table: MAPE*:
Case is developed by and is the sole property of ITC Limited. This is for academic purposes only and is not intended to be copied or
displayed or reproduced at any place outside the Campus.
ITC Interrobang Season 3 Case Challenge: Curious Case of High Inventories and Low Availability
Table: Bias
The finance manager looked conspicuously worried. While everyone is crying no stock, I am sitting with a huge value which
will be written-off for expiry and several tons of stock is transitioning from slow moving to non-moving.
Chart: Inventory ageing chart (Factory + WSP)
(These categories have a >50% reach to consumers via modern trade that give no forecasts (shop in shop and mall
formats). Organised players have stringent requirements of >75% freshness limiting system ability to keep inventories.)
ITC Interrobang Season 3 Case Challenge: Curious Case of High Inventories and Low Availability
Ajay Srivastava, brand manager chips in. I want to offer better value to consumers by providing products with natural
extracts which will increase our sales. But the aggregate pipeline is so high that I have to wait for 3 months before the new
product reaches the consumer.
Chart: Current inventory position (days of cover)
ITC Interrobang Season 3 Case Challenge: Curious Case of High Inventories and Low Availability
Existing network flow model is fairly linear in nature. ITC manages inventory till wholesale distributors.
Shipment logic:
From Factory to hub/WSP, weekly STRs are used to generate the requirements. STR = Target inventory norm Stock on
hand Stock in transit. The same logic is used to generate delivery requirement (ideal delivery order) at WD
Norms vs. actual:
Norms are defined for each SKU and location combination. Norm for a sample SKU of Category I is as below (days of cover)
Norms
Factory
Hub
WSP
WD
Cat I
20
4.4
14.9
10.0
Manufacturing cycle:
Products have monthly plan and manufacturing cycle. Manufacturing products < 300 kgs results in 40% loss of material and
more importantly results in potential stock-out of input materials in next run.
Shipment of finished goods:
Lead time is different for every location (refer annexure). CS corresponds to time between two truck load connectivity at
WSP.
Problem statement
If you were in place of Mr Sundaram, how what recommendations would you have for business to improve the
supply chain.
How, according to you, should ITC service the modern trade orders?
What should be ITCs shipment and inventory strategy at various echelons of supply chain?
ITC Interrobang Season 3 Case Challenge: Curious Case of High Inventories and Low Availability
Annexure-I
Table: Transit Times from Source to Destination.
Location
Roorkee Warangal Chandigarh Haridwar
Ahmedabad
Aurangabad
3.6
4.8
4.8
2.4
4.8
7.0
4.8
6.0
Bangalore
9.6
2.4
9.0
8.4
Belgaum
7.2
2.4
6.0
7.2
Bhopal
3.6
3.6
4.8
3.6
Bhubaneshwar
7.2
4.8
8.4
7.2
Calcutta
7.2
6.0
7.2
6.0
Calicut
13.2
3.6
11.0
9.6
Chandigarh
1.2
6.0
1.2
2.4
Chennai
9.6
2.4
10.0
8.4
Delhi
1.2
6.0
1.2
1.2
Ernakulam
10.8
3.6
11
10.8
Ghaziabad
1.2
6.0
2.4
1.2
Guwahati
14.4
8.4
14
12
Haridwar
1.2
6.0
3.0
1.2
Hyderabad
9.6
1.2
7.2
6.0
Jabalpur
4.8
3.6
6.0
4.8
Jaipur
1.2
6.0
2.4
2.4
Jammu
2.4
7.2
2.4
2.4
Jamshedpur
7.2
6.0
7.2
6.0
Jodhpur
2.4
6.0
3.6
2.4
Kanpur
2.4
6.0
3.6
3.6
Karnataka
9.6
2.4
9.0
8.4
Kundli
1.2
6.0
2.4
1.2
Ludhiana
1.2
7.2
1.2
1.2
Mumbai
4.8
3.6
7.2
6.0
Nagpur
4.8
2.4
6.0
4.8
Parwanoo
1.2
6.0
1.2
1.2
Patna
6.0
6.0
6.0
4.8
Pune
6.0
2.4
7.2
6.0
Raipur
8.4
6.0
7.0
6.0
Saharanpur
1.2
6.0
1.2
1.2
Sambalpur
4.8
4.8
7.2
6.0
Siliguri
8.4
10.0
10.0
9.6
Srinagar
6.0
14.0
4.8
3.6
Tirupati
10.8
2.4
10.0
9.6
Trichy
10.8
3.6
9.0
8.4
Varanasi
3.6
4.8
4.8
3.6
Vijaywada
9.6
1.2
8.0
7.2
Vizag
9.6
2.4
8.0
7.2
ITC Interrobang Season 3 Case Challenge: Curious Case of High Inventories and Low Availability
CS
Ahmedabad
Aurangabad
10
Bangalore
10
Belgaum
10
Bhopal
12
Bhubaneshwar
Calcutta
18
Calicut
Chandigarh
10
Chennai
Delhi
Ernakulam
10
Ghaziabad
10
Guwahati
Haridwar
Hyderabad
Jabalpur
10
Jaipur
Jammu
Jamshedpur
10
Jodhpur
10
Kanpur
18
Karnataka
10
Kundli
10
Ludhiana
Mumbai
Nagpur
16
Parwanoo
10
Patna
10
Pune
Raipur
11
Saharanpur
Sambalpur
Siliguri
18
Sri Nagar
14
Tirupati
20
Trichy
Varanasi
17
Vijaywada
17
Vizag
18