Improving the delivery reliability from Company X to its customers by inventory optimization while limiting the increase in overall inventory value.

Company X is a multinational paint manufacturer. In this research we improve the delivery reliability from company X to its customers by inventory optimization while limiting the increase in overall inventory value. More specifically, by optimizing the policy of deciding whether to order a product ready-made or tinted. In-house tinting results in the postponement of the point of customization. Therefore, demand is aggregated. We compare this with ordering a product ready-made which means that it is colored at the manufacturing site. We develop a Ready-made or Tinted Decision Model to calculate the cheapest decision.