Managment Support System

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A System for Managing Inventory at GlaxoSmithkline GlaxoSmithkline (GSK) is a global pharmaceutical company. The company sells products in of product categories-prescription drugs, over-the counter medicines, oral heaith care products. enough product quantity on hand to provide a high service level to customers, bot excess inventory costs money, so developing an optimal inventory policy is essential in achieving a decent profit. GSK wanted to evaluate its inventory policies and develop a new policy, if necessary. GSK collects all of its sales and demand information through the supply chain planning system. From this system, it extracted the historical forecast and demand, month-end inventory, production lot size, and lead time information. GSK developed a model that takes these inputs and estimates the safet stock (measured in weeks forward carryover [WFC], which is the number of weeks of estimated deman capacity). The model can determine how changes in the safety stock affect the customer service level. The entire model was built using a spreadsheet tool (Microsoft Excel). The Excel-based 'syste nables the company to evaluate many what-if situations. Because of the stochastic(uncertain) nature mand for many products, the model includes a simulation feature, which allows the company to ana impact of uncertainty in demand on the optimal safety stock level. Managers have found the 'sys be very helpful in making inventory decisions. Identify the main problem of GSK companies. rom your knowledge, what type of system is needed to solve above problem? How? will be the user of that system