Posted: June 30th, 2022

Supply Chain Management – Inventory Aggregation/Delayed Differentiation

Take into account the data and knowledge introduced within the case research “Ought to Packing Be Postponed to the DC?” (SEE BELOW), that considerations stock administration at Penang Electronics, the place orders are positioned weekly, and the lead time for receiving orders is 9 weeks.   Pay shut consideration to the main points of the case research.

Do the next:

Evaluate the 2 alternate options into consideration for ultimate labeling and packaging:

1. On the manufacturing college in Malaysia earlier than being shipped to the DC (the present strategy) and
2. On the DC in St. Louis (i.e., suspending labeling and packaging till simply earlier than cargo).

The comparability ought to contemplate the financial savings in annual holding price with aggregation in comparison with the elevated manufacturing prices of aggregation.  When figuring out if aggregation is warranted, word that how stock is managed doesn’t must be constant throughout the three merchandise (computer systems, printers, scanners).  That’s, aggregation could also be worthwhile for just one or two of the three merchandise, and this strategy will be applied.

When analyzing the 2 alternate options, assume that the demand throughout the 4 clients are unbiased and that the goal product fill charge is 99%.  As a result of a hearth destroyed all historic forecasting efficiency knowledge, whether or not or not it’s truthful to imagine that demand is unbiased throughout durations of the lead time is unknown.  Subsequently, run the Assessment two instances, utilizing the followingassumptions: (a) that demand variation is unbiased throughout durations, and (a) that demand variation is completely correlated throughout durations.

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