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A SAFETY STOCK MODEL BASED ON ORDER CHANGE-TO-DELIVERY RESPONSE TIME: A CASE STUDY FOR AUTOMOTIVE INDUSTRY

Year 2019, Volume: 37 Issue: 3, 841 - 853, 01.09.2020

Abstract

The concept of competition has changed from ‘competition among companies’ to ‘competition among supply chains’ recently. Therefore, it is necessary to determine safety stock levels through scientific methods by considering customer service level for all companies of a supply chain. In the literature, the mean demand is used to calculate safety stock levels for a specified customer service level. In this study, a rule-based safety stock methodology, considering the order quantity changes immediately before the delivery date of the customer, has been proposed as different from literature. This methodology based on ABC-XYZ analysis provides to classify products according to monetary value and order changes and to propose a safety stock level for each product group in ABC-XYZ analysis. The main motivation is to provide an optimal combination of customer service and stock levels. The proposed methodology has been applied to a company operating in the automotive sector with 1203 products. The safety stock levels were determined according to previous year data and policies on the basis of different behaviors of customers and also the sales.

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Details

Primary Language English
Subjects Engineering
Journal Section Research Articles
Authors

Murat Çolak This is me

Tuğçen Hatipoğlu This is me 0000-0001-5760-3652

Gülşen Aydın Keskin This is me 0000-0001-6639-1882

Alpaslan Fığlalı This is me

Publication Date September 1, 2020
Submission Date March 12, 2019
Published in Issue Year 2019 Volume: 37 Issue: 3

Cite

Vancouver Çolak M, Hatipoğlu T, Aydın Keskin G, Fığlalı A. A SAFETY STOCK MODEL BASED ON ORDER CHANGE-TO-DELIVERY RESPONSE TIME: A CASE STUDY FOR AUTOMOTIVE INDUSTRY. SIGMA. 2020;37(3):841-53.

IMPORTANT NOTE: JOURNAL SUBMISSION LINK https://eds.yildiz.edu.tr/sigma/