Optimising packaged gas inventory placement at welding supply distributors Online publication date: Tue, 11-Apr-2017
by Craig Harris; Malini Natarajarathinam
International Journal of Business Excellence (IJBEX), Vol. 12, No. 2, 2017
Abstract: The supply chain of packaged cylinder gases at welding distributors is a closed loop, where both the inbound and outbound flow of materials must be controlled. The importance of the placement of cylinder inventory within the distribution network of a welding distributor is a key component of profitability for a firm, seen primarily through the distribution costs associated with moving cylinders throughout the network. This project creates an inventory stratification to prioritise the vital few SKU items within the case study firm. This project develops a web-based platform called a branch stock planner in which inventory managers throughout the supply chain are provided ample information for cylinder order purposes. The branch stock planner minimises the Bullwhip effect currently present at the case firm, reducing distribution costs. Further, the project develops a visual production schedule based on distribution branch order activity. The combination of ideas creates an innovation unique in the independent welding supply industry.
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