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CKL OILS

CKL OILS. Group 10 Ms. Carly Roberts, Demand Planner Ms. Lydia Zibelman , Inventory/Procurement Analyst Ms. Kristen Prazenica , Logistics Director. Overall Company Strategy. Our strategy was to be customer-focused Responsive Efficient This focus affected the way we used: Inventory

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CKL OILS

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  1. CKL OILS Group 10 Ms. Carly Roberts, Demand Planner Ms. Lydia Zibelman, Inventory/Procurement Analyst Ms. Kristen Prazenica, Logistics Director

  2. Overall Company Strategy • Our strategy was to be customer-focused • Responsive • Efficient • This focus affected the way we used: • Inventory • Transportation • Warehousing • IT Tracking System

  3. Forecasting

  4. Closing Inventory Analysis In week 16, CKL experienced another stock out; this forced our team to order too much safety stock and our inventory sky-rocketed! In weeks six and eight, we experienced our first stock outs. In these weeks, we tried to decrease our inventory levels, experiencing a couple more stock outs due to insufficient forecasting.

  5. Transportation Misunderstanding Stock Out Analysis Late Delivery Total Stockouts: 62,002 units Understated Forecasts

  6. Service Level • Non-Stock out Probability: 87.5% • Fill Rate: 98% • Analysis • Strengths • -fulfilling customer needs • -Alignment of service level with overall strategy • Weakness • -High closing inventory/expenses

  7. Transportation Strategy • Alignment with overall strategy: consumer focused • Most timely and cost effective means • Weeks 1-12 strategy • Global Air express • Fast efficient, expensive; $6,077.67

  8. Revised Stategy: Weeks 17-36 • APL-CON Premium: Primary Demand -reliable, affordable • Global Air Express, safety stock Final Strategy: Weeks 37-48 • APL-CON Premium: Primary Demand • Saturn Air Freight: Safety Stock

  9. Average Order Quantity: 55,548 • Minimum: 0 • Maximum: 115,000 Transportation Final Results

  10. Other Analysis • Warehousing • 3PL Warehousing • Total Cost: $49,637 • Utilized in Weeks 19-33, Week 40 • Private Warehousing • Total Cost: $107,784 • IT Tracking System • Forecasting aid

  11. Future Recommendations • Transportation • Problem: There’s a trade-off between short lead times and cost. • Forecasting • Problems: Human Errors and IT Tracking System • Inventory • Problems: Stock Outs and Safety Stock

  12. Any Questions??

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