Inventory Policy and Reorder Point Analysis KELLEY BESSETTE JOHN JOHNSON JEFF LITCHFIELD MATT RISKIN

Branches/ Demand Centers Finished Cores Component Rebuild Centre Work in Process Old Cores DC

Finished Cores CRC Work in Process Old Cores DC Branch – a node in the network Demand Centre – any node in the network with demand over a critical number (5) parts per year These centres do carry inventory

Branches/ Demand Centers Finished Cores CRC Work in Process Old Cores DC Services the branches, and carries inventory for nodes with sales less than a critical value

Branches/ Demand Centers Finished Cores Work in Process Old Cores DC CRC This facility is located in Edmonton, and is responsible for refurbishing used cores Component Rebuild Centre

Branches/ Demand Centers Finished Cores CRC Work in Process Old Cores DC

Demand Centres Finished Cores CRC Work in Process Old Cores 4545

Finished Cores CRC Work in Process Old Cores 4545 Simulation of demand A variation of Croston's Intermittent Method

Finished Cores CRC Work in Process Old Cores 4545 Returning Cores Assign return time Update return time daily on a basis

Demand Centres CRC Work in Process Old Cores 4545 Refurbishing Assign processing time Track cores in process

Demand Centres Finished Cores CRC Work in Process Old Cores 4545 Distribution Where finished cores go Lead Time Track Cores en-route

Where to locate inventory Branch versus Distribution Centre Re-order point at each demand centres/distribution centres Number of cores in system Outputs of Model

Model Run Results Part Number: 6V5227 Store Number: 10

Potential Savings and Improvements

Project Accomplishments Development of a product that can be applied to 900 parts Simulating time event in Excel Model construction and implementation in a three month period

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