System Solutions
Consulting
Supply Chain Analytics
A leading consumer and industrial parts manufacturer had difficulty deploying inventory across their 8 facilities in US. Out of territory shipments hovered around 35% and customer lead times were higher than desired. Our solution involved segmenting the items across multiple dimensions by facility. Standard inventory policies were established by segment driven by desired service levels. A combination of cycle and safety stock requirement is calculated at an item level based on forecast accuracy, demand volatility and supply volatility. Ongoing requirements across facilities, by item was estimated on a weekly basis and sent as requirements for production scheduling. A deployment quantity by item by facility is estimated based on finished goods quantities at the end of production run, while maximizing the creation of full truckloads.
