Supply Chain Use Case: EOQ / Full Pallet Utilization / Optimal Buying Use Case Objective:
Identify the Optimum Order Quantity (Buying in layers vs. Full pallet) with a target of 14 days (please note: targets are subject to change according to the Supply Chain inventory strategies being implemented).
Use Case Benefits:
Improved ordering performance, lower handling cost (Vendor and ADUSA), potential lower Cost of Goods
Process/Analytical Steps:
Metrics to Review:
1. Data collection: Product Specs, Cost, and Deals 2. EOQ model used to review buying logic or what if scenarios 3. Prepare report
• Net Landed Cost to Retail • DC Inventory Turns • DC Days on Hand
Teams to Involve/Collaborate:
• Supply Chain Channel Optimization • In Stock Analyst & In-Stock Manager • Vendor Contact • Category (as needed)
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