Authors: Rahajeng Anggi Andini; Togar M. Simatupang
Addresses: School of Business and Management, Bandung Institute of Technology, 10 Ganesha St., Bandung 40132, Indonesia ' School of Business and Management, Bandung Institute of Technology, 10 Ganesha St., Bandung 40132, Indonesia
Abstract: This research aims to develop a process simulation model for the synchronisation of multiple decision parameters to ensure in full and on-time delivery. Previous research overlooks the decision complexity of inventory planning and controlling in a logistics network that consists of various divisions with different hierarchy of functions. A case study at Coca-Cola was conducted to find out the value of synchronising decision parameters of inventory planning and control for a popular line of beverages called Minute Maid Pulpy with a unique fruit flavour. Monte Carlo simulation was employed to assess the optimal operational performance for the company under various alignment scenarios. The process simulation showed that the most optimal performance was obtained by using 3.5-day coverage as the level of inventory target in the plant, updating master of production schedule based on ending inventory at the distribution centre, and using predicted ending inventory to reduce the replenishment time.
Keywords: inventory planning; inventory control; process improvement; finished goods delivery; synchronisation; decision parameters; process simulation; Monte Carlo simulation; Coca-Cola; on-time delivery; operational performance; drinks industry; beverages; master schedule; production scheduling; replenishment time.
International Journal of Logistics Systems and Management, 2014 Vol.17 No.1, pp.66 - 82
Published online: 30 Oct 2013 *Full-text access for editors Access for subscribers Purchase this article Comment on this article