Case 5. Inventory Management at Squirrel Hill Cosmetics

Paul M. Griffin, Pennsylvania State University

Company Background

Founded in 1978, Squirrel Hill Cosmetics, Inc., is a privately held company that sells cosmetic products including eyeliner, mascara, lipstick, face powder, and nail polish. The company originally made its name with a popular medicated lip balm that it manufactured in Pittsburgh. In the 1980s and 1990s the company grew primarily through acquisitions and rapidly increased its product offerings. By 2003, most of its production was moved to China, and currently it contracts out all of its manufacturing.

Squirrel Hill Cosmetics now manages more than 1,200 SKUs; approximately 15% of the SKUs turn per year because of changing ...

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