Business Case Studies & Business Publications

Musictoday, LLC: Implementing a Periodic...

Laseter, Timothy M...

Case

Musictoday, LLC: Implementing a Periodic Review Inventory System

Laseter, Timothy M.; Ashton, Jay; Gu, Vincent

OM-1114 | Published June 17, 2004 | 11 pages Case

Collection: Darden School of Business

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This case is used in Darden's first-year core operations class as part of a module on supply chain management. The Musictoday company provided online retailing services for such clients as the Dave Matthews Band and the Rolling Stones. But the lack of a formal inventory-management process had Musictoday concerned about future stockouts that would result in lost sales. This case covers the basics of safety stock within the context of a periodic review system. It introduces students to the periodic review system and provides them with an opportunity to link the optimal review period with the EOQ concept.

? Introduction of the periodic review system ? Better understanding of safety-stock calculations ? Establishment of the link between EOQ and the review period ? Reinforcement of the issue of relevant costs ? Expansion of thinking toward the extended enterprise