University of Twente Student Theses


Increasing the availability of Personal Protective Equipment in a big ad hoc service company

Binnenpoorte, F.J. (2022) Increasing the availability of Personal Protective Equipment in a big ad hoc service company.

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Abstract:This research is written for Company X. Company X is a worldwide value-driven provider of fully integrated operations, maintenance, modification and asset integrity solutions. This research, however, only addresses the 13 locations of Company X in The Netherlands. Since Company X operates in a variety of industries where challenging and dangerous terrains are no exception, working safely is extremely important. To ensure the safety of its employees, Personal Protective Equipment (PPE) need to be available at all times. At this moment this is not always the case, which results in a business that cannot continue. To solve this issue, locations sometimes buy PPE from non-contracted suppliers nearby. This is called Maverick Buying (MB) and leads to using uncertified or unqualified supplies and higher uncontrollable costs. 14.5% of the total spend on PPE is made at non-contracted suppliers. The availability of PPE at the Company X locations is sometimes low for two reasons. Firstly, the lack of a proper inventory management system. All locations manage their inventory in their own way and the way of working is not aligned. Their ERP systems are not fully utilized; therefore, demand data is unavailable to determine proper parameters. The second reason is the performance of the contracted supplier, which is commonly lacking in terms of delivery times. When looking at the most bought items, shoes and gloves, they both are delivered with a fill rate of around 76%. Company X also uses items with a Company X logo attached to them. The logos are attached to the item after ordering, so there is no dedicated stock at the supplier with items where the logo is already attached. The contracted delivery time is five working days, but only 57% of the orders are delivered within these five days. To improve the availability of PPE at the Company X locations the following research question is addressed within this thesis: “How should Company X allocate their PPE stock in their supply chain to ensure the satisfaction and safety of its employees while reducing (extra and hidden) inventory costs?”
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:50 technical science in general
Programme:Industrial Engineering and Management MSc (60029)
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