Inventory Control at Spiegel Grove

Quantitative models for inventory decision making in a multi-echelon distribution system are very challenging for most undergraduate business or engineering students. To expose students to the challenges of managing multi-echelon inventory levels in an uncertain environment, we have created the Inventory Control at Spiegel Grove classroom exercise, which simulates the inventory management process for a single product in a serial supply chain. Shipments are subject to both transportation quality variability and product quality variability, and students are challenged with adjusting their levels of safety inventory appropriately without carrying an inordinate amount of stock.