Presents data to help design an integrated production and materials control system for the laboratory chemicals division of a large pharmaceuticals and chemical company. The case may also be used to teach aspects of capacity assessment and addition, batch size and manufacturing cycle determination, etc. Data included in the case are adequate to develop inventory norms for raw materials, work?in?process and packed stocks (finished goods). The discussion should help the participants to choose appropriate inventory/scheduling models. The case can also illustrate the relative advantages and disadvantages of using analytical models and simulation.