Optimizing supply chain costs and maintaining high service levels through Safety Time optimization for enhanced performance A case study on Sonaca

Details

Supervisors

Chevalier, Philippe

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

Inventory management is a matter of strategic importance for a company. Indeed, it constitutes an essential element of the supply chain. Besides their importance for the smooth operation of the company in terms of production and delivery to customers, inventories also represent a significant source of costs. Therefore, it is crucial to pay particular attention to optimizing this component. When optimizing inventories, several important aspects must be considered. First, inventories are essential for the continuation of the company's activities. The objective is to reduce them as much as possible while maintaining the continuity of economic activity. Additionally, inventories help control risks and the impacts of uncertainties and unforeseen events. The aim of this work is to propose a new model for reviewing security measures in the supply chain. First, we will address the issue of procurement and safety needs, as well as an efficient and simple approach to calculate them. We will also conduct a comprehensive critique of this approach and examine a series of important criteria and elements to consider when optimizing safety times or safety stocks. Finally, we will study the concrete case of Sonaca, taking into account their specific context, which led us to propose a methodology and a decision support tool for reviewing security measures.