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Gomak Inc.
Case 9 50 2013 008
Case published in the International Journal of Case Studies in Management, Vol. 11, No. 3
Languages : 
  • English
Keywords: 
  • Decision analysis,
  • Inventory control,
  • Cash budgeting
Year of production : 
2013
Registration date : 
2013-09-05
Teaching notes included : 
Yes
Abstract

Gomak Inc. is a small business in the distribution industry. The company, owned by Mr Gauthier, imports 28 products in the food industry that it distributes throughout North America. In order to improve its current cash utilization, it is considering changing its inventory policy. Its most important product is a Guérande salt ordered directly from the producer three times a year. Mr Gauthier is considering changing the ordering pattern to improve both the company’s performance and cash flow.

Primary domain : 
Logistics and operations management
Secondary domain : 
Quantitative methods
Sectors : 
  • Consumer goods,
  • Wholesale trade
Source : 
HEC Montréal
Type : 
Brief case (Decision-making case)
Type of data used in the production of the case : 
Fictional data inspired by real-life situations, but significantly transformed
Event location : 
World
Year of start of the event : 
Not available
Year the event ended : 
Not available
Business size : 
Small- and medium-sized
Main themes covered

- Cash budgeting

- Different types of costs

- Decision support tools for inventory control

Teaching objectives

- Prepare the budget or obtain a good understanding of the cash flow situation
- Identify different cost types, namely variable vs. fixed and relevant vs. irrelevant
- Select the appropriate tool (decision support model) for inventory management
- Evaluate the suitable parameters to feed into the model
- Use the selected model to propose an optimal purchasing policy

Concepts and theories related to the case

Decision support models for inventory management