Abstract:
This project studies the supply chain strategy of a group of small retailers. The supply
chain of the retailer is not reliable and causes shortages and excessive product
availability. Each store functions as a silo and this adds higher costs to the operation
such as deliveries of products in the supply chain. These costs reflect on the selling price
to the customer which makes the small retailer less competitive in the market. This
project identifies three methodologies that can improve the operations of the supply
chain, Lean, Just in Time (JIT) and Vendor Managed Inventory (VMI). These
methodologies along with the allocation of a distribution centre attempts to improve
the current supply chain operations. A simulation model is identified as a useful tool to
analyse and compare viable options without the risk of high cost developments. The aim
of the project is to improve the reliability of the current supply chain.
