Compaq Computer Corp., like many manufacturers, faces operational choices that strongly influence the cost of capital engaged in inventory, customer response time, and potential product obsolescence. This case describes some key operations strategy choices regarding two types of inventory: operation inventory (e.g., flow) and tactical inventory (e.g., finished goods).

Compaq Computer Corp., like many manufacturers, faces operational choices that strongly influence the cost of capital engaged in inventory, customer response time, and potential product obsolescence. This case describes some key operations strategy choices regarding two types of inventory: operation inventory (e.g., flow) and tactical inventory (e.g., finished goods).

Case (A) describes Roche Diagnostics Division designs, manufactures and markets a range of in vitro diagnostic systems that consist of electronic instrumentation and chemical reagents. Case (A) sets the scene in 1991. It describes the launch of a service quality process to improve service from headquarters to subsidiary companies and eventually from subsidiaries to end customer.