Analysis of the material demand creation process in a make-to-order environment with a global supply chain

Abstract

In this study a data analysis model was built on excel to determine which options and part numbers are responsible for the high airfreight cost each month. This model could be maintained and used after completion of the study.

A project which analysed the demand stability history and forecasts of BMW Rosslyn was launched. This project focused mainly on the reasons for the demand changes between the ordering of the shipment at the start of the 9-week call-off period of goods ordered from global suppliers and 5-week call off period as well as between the 5-week call off period and the actual product that is built.

In this study a data analysis model was built on excel to determine which options and part numbers are responsible for the high airfreight cost each month. This model could be maintained and used after completion of the study.

The project’s aim was to identify these red areas and find alternatives and solutions to improve the production stability. The study included January 2008 up to October 2008 and had a cost saving potential of R 852413.60.

The data that must be collected from each month includes a list of the parts that was air freighted, the changes from the 9-week plan to the 5-week plan, as well as the 5-week plan until it is built.