Inventory Problems at Nike

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : OPER030 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 +Shipping & Handling Charges extra


Inventory Management
Case Length : 10 Pages
Period : 1991 - 2003
Organization : Nike
Pub Date : 2004
Teaching Note : Available
Countries : USA
Industry : Sports & Apparel


This case deals with the problems experienced by Nike, the leading manufacturer of shoes and other sports equipment in the world, in implementing a new software application to streamline its supply chain and manufacturing processes. Nike sourced its products from manufacturing facilities located in the developing Asian countries like Taiwan and Korea.

Consequently, the company had a complicated supply chain system where orders were placed by retailers six months ahead of delivery dates. These orders had to be forwarded to the factories in Asia and the final product had to be shipped back to the retailers.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies


To appreciate the importance of an effective supply chain system, specially for a manufacturing company operating in a highly competitive and trend- driven industry

To understand the importance of integrating new systems with legacy systems and processes in the organization for their effective functioning


  Page No.
Nike's Profits Fall 1
Background Note 2
New System's Teething Troubles 4
The Consequences of the Breakdown 7
Conclusion 9
Exhibits 13


Problems, Nike, manufacturer, shoes, sports equipment, world, software application, streamline, supply chain, manufacturing processes, Nike, products, manufacturing facilities, developing, Asian countries, Taiwan, Korea, retailers, six months

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