Inventory management as a driver for a higher service level

: optical industry

Abstract

The present work demonstrates how inventory management can influence the service level within a supply chain structure. The observed company operates in the Optical industry, and it is situated in the last step of the supply chain before contacting the retail stores. Stock lenses were the studied inventory, that allowed to answer the proposed question. A literature review was conducted, documental analysis and structured observation were the chosen methods to collect data, that allowed the mapping of processes, understanding of the flows, identification of waste and improvement opportunities. Tools were applied to improve the inventory management, like ABC Pareto and Min-Max Inventory System with the three-bin system to optimize reordering points. The results show the application of the tools led to a reduction of stockouts of the stock lenses, ensuring a steady supply of the desired lenses and improving the overall Service Level. It was also emphasized that reviewing periodically the supplier performance and updating the reordering point of the products, would be critical to maintain the desired service level.

Date of Award	9 Dec 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Jorge Julião (Supervisor)