Cameron Balloons is a British company established in 1971 that primarily manufactures hot air balloons. Since then they have grown to production of about 500 balloons per year, with a market share of about 70% of those produced in the United Kingdom. They are well-known for quality, novelty, and their interesting balloon shapes (Harley Davidson, the Sphinx, Beethoven, etc.) (Civilian Air Authority, 2012). With their U.S. facility the company produces over 1 balloon per day, and averages almost $10M in annual sales. Cameron Balloons is a leader in the hot-air balloon market, a very competitive market because of the overcapacity of many competitors in many countries, all vying for a limited customer. An additional strength for Cameron is that they are designed and built by two distinct companies that are independently owned and managed but are linked and committed to building the industry's best and most unique product. In addition, the Bristol, UK location can handle venues in Europe, the Middle East and Africa more cost-effectively; the U.S. operation in Ann Arbor, Michigan, North and South American and much of Asian and Oceana.

One of the most important aspects of Cameron's business is its operational management section. Certainly, its sales and marketing departments must reach out to new venues, but fortunately, the company's products act as a large billboard most times;...

But to make the process come together, effective inventory management is the key to ensuring that these balloons can be made on a regular basis with reliable materials that are in stock, ready to be customized, and central to the value chain. Lacking inventory information, or having too much or too little hurts the company. Thus, inventory management is clearly a top priority for the company. Cameron holds about 1/4 million pounds worth of stock on average, for instance, all supporting the five basic operational objectives for the company: quality, speed, dependability, flexibility, and cost. Additionally, by holding some specific types of inventory for storage, Cameron Balloons is assured that they have sufficient stocking materials to satisfy their growing market demand. It is this buffer zone that has allowed Cameron to cut the actual time of order to delivery down and increase customer satisfaction -- reduce down time, returns, and still have plenty of time for any additions or modifications necessary (Muller, 2011).
The learning module also pointed out how subtle fiscal market issues can have a major impact upon the balance sheets. For instance, if the capital invested in inventories is released, it is used elsewhere -- reducing the asset side of the balance sheet, but providing a greater return on…