Help optimize inventory for seasonal products

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.

$900
top 8
8
submissions
8
solutions max
Deliverables

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.

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This challenge has received 8 submissions
Top 5 share $750 Next 3 share $150
$150.00 Square pic cimg1685 Rensselaer Polytechnic Institute
$50.00 Square pic 1052 University of New Mexico
$50.00 S University of Georgia
$50.00 E University of Wisconsin - River Falls
$150.00 Square pic 277878 University of Texas at Austin
$150.00 Square pic 3e4ff2b Massachusetts Institute of Technology
$150.00 P Colorado State University
$150.00 Square pic 19168 258996726037 6029466 n North Carolina State University
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