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Operations Management: Processes and Supply Chains, 12th Edition by Larry P. Ritzman, Manoj K. Malhotra, Lee J. Krajewski

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Video Case Inventory Management at Crayola

Managing inventory at Crayola is a fine balancing act. With the back-to-school period driving 42 percent of company demand for crayons, markers, paints, modeling compounds, and other products, production starts in February so enough finished goods are in the 800,000-square-foot warehouse in time to supply 3,600 Walmarts, 1,400 Targets, and thousands of other retailers in the United States for the fall school-supply rush.

Crayola must supply customers with nearly 1,500 products, which requires an average inventory investment of $110 million. Finished goods inventory, shown here, must be stored in advance ...

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