Forecasting of inventory requirements based on monthly IBP cycle – Eastman

 Overview

Company Description

Eastman is a global specialty materials company that produces a broad range of chemicals, fibers and plastics materials found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end-markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,500 people around the world and serves customers in more than 100 countries. The company had 2018 revenues of approximately $10 billion and is headquartered in Kingsport, Tennessee, USA

Project Description

Eastman has a mature Integrated Business Planning process balancing demand and supply, currently done on a monthly basis. This project aims to improve the inventory forecast methodology that is currently in place. The basis of the inventory forecast is an accurate definition of safety stock and cycle stock levels. Those target stock levels should incorporate demand variability, seasonality, process reliability and customer service level requirements. Accurate target stocks that are adaptable to changes in input parameters over time is crucial for production scheduling and long term planning.

Goals of the Project

Improve the current inventory forecasting process by advising target stock levels that are adaptable to changes in input parameters (demand, service-level, etc)

Deliverables

Tool to facilitate inventory forecasting, based on calculated safety stock and cycle stock levels

Essential Student Knowledge

–

More information: escf@tue.nl