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Case Article ---KEY Electronics---Sourcing and Warehouse Analysis

Author

Listed:
  • Tim Kraft

    () (Department of Management Science and Engineering, College of Engineering, Stanford University, Stanford, California 94305)

  • Yenho T. Chung

    () (Department of Management Science and Engineering, College of Engineering, Stanford University, Stanford, California 94305)

  • Feryal Erhun

    () (Department of Management Science and Engineering, College of Engineering, Stanford University, Stanford, California 94305)

Abstract

KEY Electronics is a consumer electronics retailer that generated $1.4 billion in total revenue in 2008. KEY has a limited retail presence in Mexico, which it would like to expand from 30 stores in 2009 to 70 by year-end 2012. As part of its growth strategy, KEY must (1) improve its current sourcing of products for Mexico and (2) revamp its existing warehouse operations. The KEY Electronics case introduces students to a practical inventory modeling scenario with real-life data, where solutions are not solely based on minimum cost but also qualitative factors. By emphasizing a holistic modeling approach, the case demonstrates the interdependencies between sourcing decisions and facility requirements. KEY Electronics can be taught as an in-class discussion, a case write-up, or a course project. Case Teaching Note: Interested Instructors please see the Instructor Materials page for access to the restricted materials. To maintain the integrity and usefulness of cases published in ITE , unapproved distribution of the case teaching notes and other restricted materials to any other party is prohibited.

Suggested Citation

  • Tim Kraft & Yenho T. Chung & Feryal Erhun, 2012. "Case Article ---KEY Electronics---Sourcing and Warehouse Analysis," INFORMS Transactions on Education, INFORMS, vol. 12(2), pages 89-91, January.
  • Handle: RePEc:inm:orited:v:12:y:2012:i:2:p:89-91
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    File URL: http://dx.doi.org/10.1287/ited.1110.0065ca
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