Safety stock positioning in multi echelon environment –  MediaMarktSaturn (MMS)

 Overview

Company Description

European Electrical retailer

Project Description

MediaMarkt is centralizing its Supply Chain and has built a central warehouse in Etten-Leur which is the heart of the operation. All the suppliers will deliver to the distribution center (DC) with one physical stock location for the products, which will be then delivered to stores and online customers. We want to define how much safety stock we need to keep in DC and stores & if we need to keep dedicated stock for online customers in DC.

The solution should take business requirements into consideration, such as targeted stock levels, system constraints, supplier reliability and agreed service levels.

Goals of the Project

Determine the optimal safety stock level & positioning in the network, minimizing the inventory cost & stock we carry, while meeting a target customer service requirement.

Deliverables

Define the optimal safety stock level

Define the right location of safety stock for online customers

Determine the potential savings

Provide a roadmap how to come to this optimum

Essential Student Knowledge

Inventory Planning knowledge

Ability to handle large dataset

More information: escf@tue.nl