Case Study: Dr. Reddy's Laboratories Ltd- Inventory Management Under Resource Constraints

Set in 2016 in Hyderabad, India, the case follows Puvvala Yugandhar, Senior Vice President at Dr. Reddys Laboratories (DRL), as he decides what to do about an underperforming production policy at their plants. Adopted a decade earlier, the policy, called Replenish to ConsumptionPooled (RTC-P), had not delivered the expected results. Specifically, the plants had been seeing an increase in production switchovers and creeping buffer levels for certain products, which had led to higher holding costs and lost sales for certain products. A senior consultant had suggested that DRL switch to a demand estimation-based policy called Replenish to Anticipation (RTA), which attempted to address the above concerns by segregating production capacity and updating buffer levels using demand estimates. However, Yugandhar, well aware of the challenges of changing production policies, wanted to explore a variant of RTC-P called Replenish to ConsumptionDedicated (RTC-D), which followed the same buffer update rules as RTC-P but maintained dedicated capacities for a subset of products. (unable to provide the whole case on here)

What input parameters will have a significant impact on performance? How does varying these input parameters affect the various metrics?