Quantifying the benefits of a multi-echelon approach – HILTI

When inventory is optimized locally, inventory control is often based on a single-echelon approach. But a single-echelon approach might not be optimal from a broader supply chain perspective. In order to optimize stock levels over multiple supply chain stages and still ensure a high service level to end customers, this project focuses on the potential of multi-echelon inventory control. More precisely, the potential of centralized inventory control under different settings is studied. This should help to strive for optimized stock levels throughout the entire Hilti network, and in the meantime ensure a high service to end customers.