Abstract
Supply chain optimization is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs, while satisfying service level requirements. The proposed study addresses the issue of supply chain optimization amongst three companies: Vistakon, which sources the cartons to package ACUVUE contact lens; North State Cartons, which is the carton supplier; and Durango Paper Company, which is the paperboard supplier. An effort is made to integrate the production and information flow and ensure timely production and distribution of the cartons, which reduced the lead-times and inventory levels at Vistakon’s, North State Carton’s, and Durango Paper Company’s site location. The complete supply chain solution to optimize the existing system is provided and the ordering process solution is presented in the form of service level models. As a result of optimized supply chain management, the overall lead-time of the complete cartons manufacturing and procurement process is enormously reduced. The supply chain member organizations are benefited by reduced carton inventory levels, effective demand forecasting system, better inventory management system, improved information sharing system, decreased annual setup cost, and increased annual savings.
|
