Redesign of the supply chain in a small retail environment

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.