Delivery Strategy at MoonChem John Moon was very concerned as he left the meeting at MoonChem, a manufacturer of specialty chemicals. The year-end meeting had evaluated financial performance and discussed the fact that the firm was achieving only two inventory turns a year. A more careful look revealed that over half the inventory MoonChem owned was consignment inventory with its customers. This was very surprising given that only 20 percent of its customers carried consignment inventory. John Moon was Vice President of Supply Chain and thus responsible for inventory as well as transportation. He decided to take a careful look at how consignment inventory was managed and come up with an appropriate plan. MOONCHEM OPERATIONS MoonChem is a manufacturer of specialty chemicals used in a variety of industrial applications. MoonChem has eight manufacturing plants and forty distribution centres. The plants manufacture the base chemicals, and the distribution centres mix them to produce hundreds of end-products that fit customer specifications. In the specialty chemicals market, MoonChem has decided to differentiate itself in the Southeast region by providing consignment inventory to its customers