Question: 1. What analysis of simulation data can you do to better understand inventory buildup at the different facilities in the supply chain? 2. What happens

1. What analysis of simulation data can you do to better understand inventory buildup at the different facilities in the supply chain?

2. What happens when you substitute just-in-time delivery of inventory instead of keeping large on-hand quantities?

Does this allow you to reduce inventory amounts across the supply chain?

3. Just-in-time delivery means increasing the frequency of product deliveries to better match daily demand at the stores and avoid stock outages at stores.

4. Adjust delivery quantities based on where you want the inventory to build up in the supply chain without creating either excess or shortages.

5. Inventory safety stock levels must accommodate daily demand, delivery delays, and the occasional day when an expected delivery is missed. With this in mind, what is the lowest level of safety stock to maintain at a store? (Hint: apply a standard definition of safe stock - it equals total daily product demand for the number of days between deliveries.)

6. Explore reduction of inventory build-up at stores by concentrating inventory of products at the DC and using just-in-time deliveries to stores from the DC.

7. Here is one approach to lowering inventory at stores: Supply Chain Facilities Factories Joint Distribution Center Retail Stores

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