Effective Inventory Control and Management: MBA Case Study of IKEA

An inventory management is a system to manage and locate objects or materials. The accuracy of the order, the execution of delivery and the control of time is one of the basic in inventory management. It is important part of supply chain management (SCM). Inventory control is concerned with minimizing the total cost of inventory. Now-a-days inventory control systems often depends on barcodes and radio-frequency identification(RFID) tags which provide automatic  documentation of inventory objects. Fixed assets, circulating tools, library books, merchandise-these all are the various types of inventory objects.

The name IKEA is an abbreviation of “Ingvar Kamprad Elmtaryd Agunnaryd”.  Ikea is one of the largest and most popular home furnishing companies. Its aim to sell good quality products at low prices. Designing, buying and selling home furnishing   products-these are the main competences of Ikea. Now-a-days there are more than 300 Ikea stores, located in 37 different countries and is increasing constantly. IKEA employs over 127 000 people and is present in Europe, North America, Asia and Australia. The main aim of this research proposal is to help Ikea to improve the inventory control systems in order to lower inventory levels.


  • The challenges faces by the Ikea in supply chain
  • Reduce high holding costs which will improve the profitability of Ikea
  • Helps to improve customer services while investigate the approaches for inventory control in order to lower stock levels 


  • How the challenges can be solved in supply chain for Ikea?
  • At the what level, holding cost can increase the profitability of Ikea?
  • Is it a good idea to finding new approaches for inventory control in order to improve customer services?


A literature review is a way of investigate the subject which already has been written by some authors. Inventory management and control is the process of efficient supervision and control of supplies and materials availability. The Swedish company (IKEA) was based on the idea that as long as the price was right including customers travel distance, standing in a queue, collection and deliver the furniture themselves.  So the main concern for Ikea is its inventory management. For this concern, Just-in-Time (JIT) strategy can make a significant impact. JIT can be considered as a philosophy for waste reduction and continuous improvement and a way of increasing materials. According to Reddy (1994), JIT strategy can enhance product quality, improve employee morale and increase customer satisfaction.

The operation strategy of IKEA is founded on its mission of creating high quality products in affordable prices. In addition, it has chosen flat packages which save space in transportation and warehousing. Residential locations and large store reduce delivery costs, self-select for young families with cars and reduce other expenses. However, IKEA does not have its own manufacturing facilities and its inventory levels are high. This will create unnecessary high holding costs which will reduce the profitability of IKEA. So this project will help to reduce high holding costs.


Research methodology of this case study would be quantitative or qualitative or a mix between the two. In this research, both methodologies can use to set up the objectives and solve them.

In quantitative study, the information will gather and can be measured and described in numbers. On the other hand, qualitative study will use more detailed information compared to quantitative study. The collection of qualitative data can be interviews, observations and literature reviews.


Gathering the data can be available from one or two kinds of sources; primary or secondary sources. Interviews, enquiries are the primary sources in which the information needed to get the main purpose of the current study. On the other hand, secondary data can be obtain by different kinds of researches. It can be literature on the subject or presentations as well.


Introduction lecture WEEK 1
Literature review lecture WEEK 2
Research Methodology lecture WEEK 3
Research Methodology lecture WEEK 4
Identify Research Questions WEEK 5
Preparation of Interview Questions WEEK 6
Data Collections WEEK 7
Data Analysis WEEK 8
Preparing the lay out WEEK 9 & 10
Documentation of final report  

3 Replies to “Effective Inventory Control and Management: MBA Case Study of IKEA”

  1. Will u pleas send me the project report of
    Effective Inventory Control and Management: MBA Case Study of IKEA

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