R.J. Reynolds Tobacco Co.

Following the company's purchase as a part of a leveraged buyout, the new management team of R.J. Reynolds Tobacco Co. had to decide what to do about the build-up of excess inventory of its independent wholesale customers. The case introduces students to the problems that changing inventory levels can create in interpreting financial results. Also raises ethical issues about the effect of such practices on company management, investors, wholesalers, and ultimately customers.