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Policy Safety Stock Cost Optimization : Xerox Consumable Supply Chain Case Study
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 Title & Authors
Policy Safety Stock Cost Optimization : Xerox Consumable Supply Chain Case Study
Suh, Eun Suk;
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Inventory, cost, and the level of service are three interrelated key metrics that most supply chain organizations are striving to optimize. One way to achieve this goal is to create a simulation model to conduct sensitivity analysis and optimization on several different supply chain policies that can be implemented in actual operation. In this paper, a case of Xerox global supply chain modeling and analysis to assess several "what if" scenarios for the consumable policy safety stock is presented. The simulation model, combined with analytical cost model and optimization module, is used to optimize the policy safety stock level to achieve the lowest total value chain cost. It was shown quantitatively that the policy safety stock can be reduced, but it is offset by the inbound premium transportation cost to expedite supplies in shortage, and the outbound premium transportation cost to send supplies to customers via express shipment, requiring fine balance.
Supply Chain Model;Discrete Event Simulation;Policy Safety Stock Optimization;
 Cited by
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