Track: Supply Chain and Logisitcs Competition

Abstract

This is a case study of a multinational that reviewed its parameters for the product replenishment process and analyzed the need to keep them in stock. Due to the high costs that accumulated goods generate, it is always necessary to reassess whether a product still has regular and sufficient consumption to be available for prompt delivery. If this item is justified as a make to stock item, parameters must be calculated to be aware of the right moment when a purchase order must be generated to replenish the stock. The criteria used to determine whether the item is a make to stock or make to order, are applied by analyzing the consumption history of that product, its number of customers and how much its consumption varies over the months. At the end of the process, positive results are achieved, such as: increase in the service level, reduction in the amount invested in inventory and a lower expense with air freight for emergency replacement. As consumption can change over time, it is concluded that this process must be done periodically, to align the stock data with the current demand and make the planner's work more assertive.