Benefits of Aligning Supply and Demand: Case Pack Optimization

Open Access
Author:
Swahn, Alexa Lyanna
Area of Honors:
Supply Chain and Information Systems
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Robert Alexander Novack, Thesis Supervisor
  • John C Spychalski, Faculty Reader
Keywords:
  • case pack
  • optimization
  • supply chain
Abstract:
The purpose of this thesis is to determine the optimal case pack size for four of a retailer’s beauty products and to show the benefits of aligning supply and demand. The optimal case pack size will be modeled in Excel using a delivery agent cost, inventory holding cost, corrugate cost, and vendor processing cost. A simulation that uses the costs from the Excel model and also incorporates excess inventory into meeting demand will be used to more accurately determine optimal case pack size. An expanded simulation which includes a store processing cost along with the costs from the simulation will also be used to determine optimal case pack size. Optimal case pack size will also be determined for the stock keeping units of one of the four beauty products.