Case Notes/Answers
Indus Motors Inventory Management By Joshin John,
Neetha Eappen, Kingsly Sam Raj
Discussion Questions:
1. What is the principal dilemma in the case and the challenges faced by Indus Motors?
2. Analyze the inventory managed at Indus Motors’ warehouses and stores in Kerala and comment on
the stocking issues that you observe from the data available.
3. Explain the procurement and ordering practices at Indus Motors and quantify the stock-outs and
excess (deadstock) inventory in the network. What are the managerial implications of your
observations and assessment in order to improve inventory management at Indus?
4. Based on the case analysis, what suggestions should Unni and Jaleel offer to the company’s
directors to improve and optimize parts management?
5. What is the scope for data driven decision making, supply chain analytics, and use of digital
systems for improving inventory-related systems at Indus Motors? (Use supplementary data file of the
Kannur warehouse for more detailed granular analysis.)
, W36855
Teaching Note
INDUS MOTORS: INVENTORY MANAGEMENT
SYNOPSIS
Indus Motors was the largest automobile dealer in the state of Kerala, providing services in this southern state
of India across multiple verticals, including sale of new cars, automobile servicing and repairs, reselling of
second-hand cars, rent-a-car service, and car financing and insurance. Five large warehouses in the state supplied
spares and accessories consisting of 19,000 stock keeping units (SKU) to the 76 automobile service workshops
across Kerala, each warehouse supplying items to the service centres in that zone. The company implemented
an enterprise resource planning (ERP) system recently but did not realize the benefits of data driven decisions
and inventory management remained a concern. Demand uncertainties, forecast errors, and model
refresh/facelifts resulted in excessive dead stock in the system and inefficiencies in procurement and distribution.
LEARNING OBJECTIVES
This case is written to expose students to the challenges in inventory management. In working through the
case and assignment questions, students will have the opportunity to do the following:
• Understand the complexity of managing inventory in a large auto spare part supply network.
• Learn about types of inventory classification and the movement (flow) of inventory through the system.
• Identify reasons for inventory buildup and ways to mitigate it.
• Understand the impact of improper inventory management on a company’s operations.
• Analyze procurement and inventory holding patterns and apply appropriate inventory control
techniques that best suit the situation’s dynamics.
• Manage issues with procurement and distribution given the challenges of demand forecasting.
POSITION IN COURSE
This case is suitable for use in Master of Business Administration or executive education programs as part
of a core course on operations management or supply chain management or as part of inventory
This Teaching Note is authorized for use only by ELENA PIKULINA, University of British Columbia until Mar 2026. Copying or posting is an infringement of copyright.
or 617.783.7860.
, Page 2 W36855
management in a course on procurement and sourcing, materials management, ERP, supply chain analytics,
operations planning, and control, or cost accounting. It may also be used in elective courses dealing with
inventory control techniques.
RELEVANT READINGS
• Lee J. Krajewski, Manoj K. Malhotra, and Larry P. Ritzman, Operations Management: Processes and
Supply Chains, 12th ed. (New York, NY: Pearson, 2019).
• Max Muller, Essentials of Inventory Management, 3rd ed. (New York, NY: Harper Collins, 2019).
• Morris A. Cohen, Narendra Agrawal, and Vipul Agrawal, “Winning in the Aftermarket,” Harvard
Business Review 84, no. 5 (2006): 129–138.
• Sunil Chopra and Peter Meindl, Supply Chain Management: Strategy, Planning, and Operation, 6th
ed. (Boston: Pearson, 2016).
• W. J. Kennedy, J. Wayne Patterson, and Lawrence D. Fredendall, “An Overview of Recent Literature
on Spare Parts Inventories,” International Journal of Production Economics 76, no. 2 (2002): 201–215.
ASSIGNMENT QUESTIONS
1. What is the principal dilemma in the case and the challenges faced by Indus Motors?
2. Analyze the inventory managed at Indus Motors’ warehouses and stores in Kerala and comment on the
stocking issues that you observe from the data available.
3. Explain the procurement and ordering practices at Indus Motors and quantify the stock-outs and excess
(deadstock) inventory in the network. What are the managerial implications of your observations and
assessment in order to improve inventory management at Indus?
4. Based on the case analysis, what suggestions should Unni and Jaleel offer to the company’s directors
to improve and optimize parts management?
5. What is the scope for data driven decision making, supply chain analytics, and use of digital systems
for improving inventory-related systems at Indus Motors? (Use supplementary data file of the Kannur
warehouse for more detailed granular analysis.)
TEACHING PLAN
The following teaching plan may be used in an 80-minute class session, as outlined below.
Discussion topic Time
(minutes)
Introduction & Background: Automobile aftermarket services 10
industry, characteristics, and implications for inventory management
Assignment Question 1: Dilemma, operational challenges at Indus 10
Motors
Assignment Question 2: Inventory control (for example, categorize 15
items into A, B, or C groups [ABC], high, medium or low cost [HML],
fast-, slow-, and non-moving [FSN])
Assignment Question 3: Procurement and replenishment (for 15
example, economic order quantity [EOQ], reorder point [ROP)])
This Teaching Note is authorized for use only by ELENA PIKULINA, University of British Columbia until Mar 2026. Copying or posting is an infringement of copyright.
or 617.783.7860.
Indus Motors Inventory Management By Joshin John,
Neetha Eappen, Kingsly Sam Raj
Discussion Questions:
1. What is the principal dilemma in the case and the challenges faced by Indus Motors?
2. Analyze the inventory managed at Indus Motors’ warehouses and stores in Kerala and comment on
the stocking issues that you observe from the data available.
3. Explain the procurement and ordering practices at Indus Motors and quantify the stock-outs and
excess (deadstock) inventory in the network. What are the managerial implications of your
observations and assessment in order to improve inventory management at Indus?
4. Based on the case analysis, what suggestions should Unni and Jaleel offer to the company’s
directors to improve and optimize parts management?
5. What is the scope for data driven decision making, supply chain analytics, and use of digital
systems for improving inventory-related systems at Indus Motors? (Use supplementary data file of the
Kannur warehouse for more detailed granular analysis.)
, W36855
Teaching Note
INDUS MOTORS: INVENTORY MANAGEMENT
SYNOPSIS
Indus Motors was the largest automobile dealer in the state of Kerala, providing services in this southern state
of India across multiple verticals, including sale of new cars, automobile servicing and repairs, reselling of
second-hand cars, rent-a-car service, and car financing and insurance. Five large warehouses in the state supplied
spares and accessories consisting of 19,000 stock keeping units (SKU) to the 76 automobile service workshops
across Kerala, each warehouse supplying items to the service centres in that zone. The company implemented
an enterprise resource planning (ERP) system recently but did not realize the benefits of data driven decisions
and inventory management remained a concern. Demand uncertainties, forecast errors, and model
refresh/facelifts resulted in excessive dead stock in the system and inefficiencies in procurement and distribution.
LEARNING OBJECTIVES
This case is written to expose students to the challenges in inventory management. In working through the
case and assignment questions, students will have the opportunity to do the following:
• Understand the complexity of managing inventory in a large auto spare part supply network.
• Learn about types of inventory classification and the movement (flow) of inventory through the system.
• Identify reasons for inventory buildup and ways to mitigate it.
• Understand the impact of improper inventory management on a company’s operations.
• Analyze procurement and inventory holding patterns and apply appropriate inventory control
techniques that best suit the situation’s dynamics.
• Manage issues with procurement and distribution given the challenges of demand forecasting.
POSITION IN COURSE
This case is suitable for use in Master of Business Administration or executive education programs as part
of a core course on operations management or supply chain management or as part of inventory
This Teaching Note is authorized for use only by ELENA PIKULINA, University of British Columbia until Mar 2026. Copying or posting is an infringement of copyright.
or 617.783.7860.
, Page 2 W36855
management in a course on procurement and sourcing, materials management, ERP, supply chain analytics,
operations planning, and control, or cost accounting. It may also be used in elective courses dealing with
inventory control techniques.
RELEVANT READINGS
• Lee J. Krajewski, Manoj K. Malhotra, and Larry P. Ritzman, Operations Management: Processes and
Supply Chains, 12th ed. (New York, NY: Pearson, 2019).
• Max Muller, Essentials of Inventory Management, 3rd ed. (New York, NY: Harper Collins, 2019).
• Morris A. Cohen, Narendra Agrawal, and Vipul Agrawal, “Winning in the Aftermarket,” Harvard
Business Review 84, no. 5 (2006): 129–138.
• Sunil Chopra and Peter Meindl, Supply Chain Management: Strategy, Planning, and Operation, 6th
ed. (Boston: Pearson, 2016).
• W. J. Kennedy, J. Wayne Patterson, and Lawrence D. Fredendall, “An Overview of Recent Literature
on Spare Parts Inventories,” International Journal of Production Economics 76, no. 2 (2002): 201–215.
ASSIGNMENT QUESTIONS
1. What is the principal dilemma in the case and the challenges faced by Indus Motors?
2. Analyze the inventory managed at Indus Motors’ warehouses and stores in Kerala and comment on the
stocking issues that you observe from the data available.
3. Explain the procurement and ordering practices at Indus Motors and quantify the stock-outs and excess
(deadstock) inventory in the network. What are the managerial implications of your observations and
assessment in order to improve inventory management at Indus?
4. Based on the case analysis, what suggestions should Unni and Jaleel offer to the company’s directors
to improve and optimize parts management?
5. What is the scope for data driven decision making, supply chain analytics, and use of digital systems
for improving inventory-related systems at Indus Motors? (Use supplementary data file of the Kannur
warehouse for more detailed granular analysis.)
TEACHING PLAN
The following teaching plan may be used in an 80-minute class session, as outlined below.
Discussion topic Time
(minutes)
Introduction & Background: Automobile aftermarket services 10
industry, characteristics, and implications for inventory management
Assignment Question 1: Dilemma, operational challenges at Indus 10
Motors
Assignment Question 2: Inventory control (for example, categorize 15
items into A, B, or C groups [ABC], high, medium or low cost [HML],
fast-, slow-, and non-moving [FSN])
Assignment Question 3: Procurement and replenishment (for 15
example, economic order quantity [EOQ], reorder point [ROP)])
This Teaching Note is authorized for use only by ELENA PIKULINA, University of British Columbia until Mar 2026. Copying or posting is an infringement of copyright.
or 617.783.7860.
