Client: Multi-national company
Project: Branch Service Optimisation
Result: Optimal servicing schedules and holding limits, reduced overall supply chain costs.
Problem Statement (Complexity):
Should the service frequency of branches be reduced to reduce logistic costs – at an expense of increased holding costs.
Should service frequency of branches increase to reduce holding costs – at an expense of increased logistic costs.
The Improvement Project provided the following:
Branch servicing schedule assessment.
Branch holding limit assessment.
Cost trade-off between logistic costs and holding costs.
Operations research using @Risk as modelling platform.
Total saving of R3.5 million.
Improved servicing schedules.
Adjusted branch holding limits.