Seasonal food products can sometimes pose an obstacle for maximizing inventory efficiency, because it can be hard to match market demand with factory production. For example, certain types of soup represent a seasonal business, and these have a shelf life longer than most other food items. To meet high demand in the winter, soup is produced in the summer and fall and stored until an order is placed. This leads to high levels of non-working capital sitting in a warehouse.
To give you a sense of the potential to maximize inventory efficiency, take a look at these numbers from 2 of our manufacturing sites with national distribution:
· 10% of the total SKUs (fancy term for individual products. It stands for stock keeping unit) represent one-third of the warehouse volume, and these turn over every week.
· 30% of the SKUs represent the middle third of warehouse volume, and these turn over every other week.
· 60% of the SKUs represent the last third of volume, and these turn over every 18-24 months.
Please submit the following:
1) An artistic rendering (picture, diagram, video, chart, powerpoint etc.) that breaks down the steps needed to implement your proposed method for maximizing inventory efficiency.
2) A written description that explains each step in your diagram. Please specify how your method will improve inventory efficiency, and cut back on non-working capital sitting in the warehouse.
Criteria: Your solutions should not reduce the number of SKUs in warehouses, and should not require a change in manufacturing locations.
|Top 5 share $750||Next 3 share $150|
|$150.00||Deniz Kortan Rensselaer Polytechnic Institute|
|$150.00||Mario Conti University of Texas at Austin|
|$150.00||Jason (Jinho) Choi Massachusetts Institute of Technology|
|$150.00||Paul Jensen Colorado State University|
|$150.00||Wing Beaver North Carolina State University|
|$50.00||Olivia Crooks University of New Mexico|
|$50.00||Silvia Abruzzi University of Georgia|
|$50.00||exelon University of Wisconsin - River Falls|