University of Twente Student Theses

Login

Optimizing the dynamic safety stock levels of Grolsch : a simulation-based evaluation of the dynamic safety stock levels

Snoeijink, B.D.A. (2023) Optimizing the dynamic safety stock levels of Grolsch : a simulation-based evaluation of the dynamic safety stock levels.

[img] PDF
4MB
Abstract:Grolsch is currently not able to reach the target Stock Availability percentage for its SKUs. Therefore, we have researched how Grolsch could reach its Stock Availability percentage against minimum operational (inventory-related) costs. We proposed the use of a static safety stock calculation to calculate a new dynamic safety stock allocation in terms of a minimum Days of Cover. We have tried 3 different methods to calculate a new minimum Days of Cover allocation, and we have adjusted the current 1-year ahead production plan of Grolsch using these new minimum Days of Cover allocations. By simulating the old and the 3 new production plans we were able to find that the shelf life of the SKU and the seasonality of the demand pattern of the SKU have a big influence on the optimality of the dynamic safety stock allocation. We therefore propose a lower minimum Days of Cover for seasonal SKUs with a shorter shelf life, and a higher minimum Days of Cover for seasonal SKUs with a longer shelf life, whilst keeping the same minimum Days of Cover for the non-seasonal SKUs. Our proposed recommendation leads to a total cost increase of 1.35% whilst reaching the target Stock Availability percentage.
Item Type:Essay (Master)
Clients:
Koninklijke Grolsch B.V., Enschede, The Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:31 mathematics, 70 social sciences in general, 85 business administration, organizational science
Programme:Industrial Engineering and Management MSc (60029)
Link to this item:https://purl.utwente.nl/essays/96930
Export this item as:BibTeX
EndNote
HTML Citation
Reference Manager

 

Repository Staff Only: item control page