This case focuses on the experience of a newly hired procurement manager who wanted to turn around the inventory management system at an oil and gas drilling contractor company—a step that seemed imminent. The case walks students through the inventory management process of a typical oil and gas drilling contractor to eliminate inefficiencies. By studying this case, students will realize the importance of efficient inventory management for the profitability of the company, identify inefficiencies in the existing inventory management process, learn the complexities involved in the inventory management process, and come up with their own optimum solutions.
After completing the case, students should be able to do the following:
1. Identify the inefficiencies in the inventory management process.
2. Calculate the minimum and maximum levels for inventory using an Excel spreadsheet.
3. Devise solutions to inventory management issues.