CKL OILS
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CKL OILS Group 10 Ms. Carly Roberts, Demand Planner Ms. Lydia Zibelman, Inventory/Procurement Analyst Ms. Kristen Prazenica, Logistics Director
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CKL OILS. Group 10 Ms. Carly Roberts, Demand Planner Ms. Lydia Zibelman , Inventory/Procurement Analyst Ms. Kristen Prazenica , Logistics Director. Overall Company Strategy. Our strategy was to be customer-focused Responsive Efficient This focus affected the way we used: Inventory - PowerPoint PPT Presentation
Transcript of CKL OILS
CKL OILSGroup 10Ms. Carly Roberts, Demand PlannerMs. Lydia Zibelman, Inventory/Procurement AnalystMs. Kristen Prazenica, Logistics Director
Our strategy was to be customer-focused◦ Responsive◦ Efficient
This focus affected the way we used:◦ Inventory◦ Transportation◦ Warehousing◦ IT Tracking System
Overall Company Strategy
Forecasting
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10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
SalesForecast
In weeks six and eight, we experienced our first stock outs.
In week 16, CKL experienced another stock out; this forced our team to order too much safety stock and our inventory sky-rocketed!
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20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
In these weeks, we tried to decrease our inventory levels, experiencing a couple more stock outs due to insufficient forecasting.
Closing InventoryAnalysis
Stock Out Analysis
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2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
3,972
13,856
9,502
15,261
9,106
10,305
Total Stockouts: 62,002 unitsUnderstated Forecasts
Late Delivery
Transportation Misunderstanding
Non-Stock out Probability: 87.5% Fill Rate: 98%
Service Level
Analysis Strengths -fulfilling customer needs -Alignment of service level with overall strategy• Weakness -High closing inventory/expenses
Transportation Strategy• Alignment with overall strategy: consumer
focused• Most timely and cost effective means• Weeks 1-12 strategy
• Global Air express• Fast efficient, expensive; $6,077.67
APL-CON Premium: Primary Demand -reliable, affordable Global Air Express, safety stock
Final Strategy: Weeks 37-48
APL-CON Premium: Primary Demand Saturn Air Freight: Safety Stock
Revised Stategy: Weeks 17-36
Transportation Final Results
Average Order Quantity: 55,548
Minimum: 0 Maximum:
115,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
On Time DeliveryLate Delivery
SATURN AIR FREIGHT
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 490
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
On Time DeliveryLate Delivery
APL CON PREMIUM
Warehousing 3PL Warehousing
Total Cost: $49,637 Utilized in Weeks 19-33, Week 40
Private Warehousing Total Cost: $107,784
IT Tracking System Forecasting aid
Other Analysis
Future Recommendations Transportation
◦ Problem: There’s a trade-off between short lead times and cost.
Forecasting◦ Problems: Human Errors and IT Tracking System
Inventory◦ Problems: Stock Outs and Safety Stock
Any Questions??
