Al-Kadi Commerce & Industry



IE code:
Language: English
also available in Spanish
also available in PDF
Est. dedication time:
60 minutes
Type of publication:
Case Study

Instructor support

A Teaching Note is available for this material.

Al-Kadi Commerce & Industry

Awards received

  • EFMD 2012 Case Writing Competition Highly Commended - Supply Chain Management


The case presents the problems that the Al-Kadi Truck & Trailer Parts Division was facing related to its operations and stock management. In addition in Saudi Arabia where the case takes place the auto parts sector was also changing. The student has to re-plan the logistics strategy of the company choosing from a centralized or a decentralized strategy.

To be able to plan the new strategy the case provides information about the company's current strategy the problems it is facing the sector the country and the market. Interviews with one of the executives animations of the company's distribution model and detailed informative maps of Saudi Arabia will help students to make their decision about the future logistic and operations strategy.

The case can be used as part of a Supply Chain or Operations Management core or elective course to discuss issues associated with the design of inventory systems and networks. It can be used in master programs such as MBA, Master in Management, Master in Operations Management, etc or degree / university level students who have some previous knowledge on supply chain issues and logistics, as well as in executive education programs.

Author's comments

The case is appropriate to introduce students to some key features of logistics network design. Specifically the case focuses on the inventory centralization / decentralization problem and on the factors that increase or decrease the convenience of centralized inventory structures. One interesting point is that the case is co-written by the member of the Al Kadi family who is actually running the business (a former IE MBA). This brings a lot of detail and credibility to the case.

The multimedia tool allows the student to get a better feeling of the case settings and to better understand the specific problem being addressed. Interviews from key stakeholders provide important background information. On top of the previous points the case provides the student with a broad view of logistics network structuring decisions including their relation with product strategy and information systems design. (Fabrizio Salvador)

This case realistically simulates the management of a real auto parts distribution company in Saudi Arabia. The student has to make decisions about the location of the stocks as well as their distribution in a new and complex environment. This case is ideal to be used in supply chain and logistics classes. It could be assigned to be prepared before the class and then discussed interactively in class asking for the justification of the different policies chosen and helping in the debate of topics such as the trade-off between inventory and transport multi-echelon systems the pendulum effect and classification policies. (Ángel Díaz)

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