Authors:
Antonio Cordova, Jessie Yao
MIT Supply Chain Management Program (SCM)
46
Summary:
P&G would like to develop a new strategy to reduce its overall non-productive inventory level without introducing vulnerabilities that can jeopardize its capability to manufacture and meet their customer demand on time. Taking in consideration our literature review and the sponsor’s complex supply chain structure, we have decided to make use of the Guaranteed-Service Model (GSM). GSM’s aim is determining the best service times that minimize costs and inventory levels while meeting service requirements for customers. We expect this model to help determine optimal safety stock level and allocation across P&G’s multi-echelon supply chain system.
