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Case Study - Optimisation of a Cash Supply Chain (1)

March 22, 2017

 

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.

Project Outputs:

  • Total saving of R3.5 million.

  • Improved servicing schedules.

  • Adjusted branch holding limits.

 

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