Gunny Bags Inventory at Western India Cement Company

Abstract

Gunny bags are used for packing of cement. Non-availability of gunny bags may result in building up of cement stock and ultimately affect the operation of the cement plant. Supplies over a long distance, as also other losses, affect the availability of gunny bags. The case describes such a situation and poses a decision problem in terms of arriving at the inventory policy of gunny bags with the uncertainties associated with it.