Improving Service Level and Inventory Management A Holistic Approach to Operational Enhancement

Abstract

Growing competition and increasingly complex global supply chains have made businesses focus more on improving efficiency and effectiveness. In today's business landscape, merely possessing the right products is insufficient; instead, there is a growing emphasis on finding innovative strategies to improve supply chain effectiveness and enhance customer satisfaction. The present study addresses the challenges and opportunities in improving supply chain performance and reduces stockout or obsolete. As businesses face intensified competition and heightened supply chain complexities, there is a need to enhance efficiency in order to meet evolving customer demands. This thesis investigates the specific areas of operations within a case company, aiming to identify inefficiencies and propose viable solutions for service level improvement of the final products. Through a comprehensive case study methodology, including semi-structured interviews, investigating through internal documents and analysis of data, the research uncovers potential areas for enhancing inventory management and improving service level. Key recommendations include investigating inventory management approaches and multi-criteria ABC classification of components based on their volume and value and assigning related service levels to each individually. Additionally, different sales orders are defined as different scenarios for testing the accountability of assigned service level.