Multi-echelon inventory control in supply chain management (SCM)

Inventory is lifeblood in an organization. Multiechelon inventory of Olympia paper mill, Khyber Pakhtonkhwa is optimized by efficient management of the organizational supply chain (SC). A supply chain is designed starting from raw material receiving from supplier up to finished good delivered to the customer. The on-going setup of the selected organization is traditional based on the experience of the current managers while in the recommended procedure, the demand is forecasted, produced and filled using various scientific model. The inventory level at various level is reduced which in turn reduce the cost. Decisions such as safety stock SS, ROP Reorder Point and outsourcing are recommended based on engineering knowledge. The designed SC is modelled in an Expert System tool, Application Manager (AM). With the efficient development of SC and automated tool, the inventory level and associated cost of the company is reduced by 35%. Also lead time of the product to customer is reduced from 3 days to 1 day.