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Freako Day: Group 4 Mayank Mishra Sravan Kumar Rapaka Piyush Tripathi Harish G Raut

This document discusses Freako Day, a snack company with over 300 stock keeping units (SKUs) sold under their Days brand. It outlines their supply chain, which includes 3 centralized plants, depots, distributors, and retailers. The company's ERP system covers transactions from procurement to primary transportation. Recently, service levels have dropped to 72% from 84% last year and stockouts have increased for some SKUs while overstocking has increased for others. Time series forecasting and inventory norms are proposed to address demand forecasting and depot issues. A model is suggested that prioritizes distributors equally with at least 50% truck utilization.

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Sravan Kr
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197 views15 pages

Freako Day: Group 4 Mayank Mishra Sravan Kumar Rapaka Piyush Tripathi Harish G Raut

This document discusses Freako Day, a snack company with over 300 stock keeping units (SKUs) sold under their Days brand. It outlines their supply chain, which includes 3 centralized plants, depots, distributors, and retailers. The company's ERP system covers transactions from procurement to primary transportation. Recently, service levels have dropped to 72% from 84% last year and stockouts have increased for some SKUs while overstocking has increased for others. Time series forecasting and inventory norms are proposed to address demand forecasting and depot issues. A model is suggested that prioritizes distributors equally with at least 50% truck utilization.

Uploaded by

Sravan Kr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Freako Day

GROUP 4

MAYANK MISHRA

SRAVAN KUMAR RAPAKA

PIYUSH TRIPATHI

HARISH G RAUT
 Freako Day is a snack company
 Famous brand -> “Days”
 Sold in multiple flavours
 Sold in different pack sizes
 Cumulates to 300+ SKUs
 ERP system that covers transactions at procurement,
production, depots and primary transports
Case Facts  Production, Procurement and Primary transport are
planned on weekly basis
 Service level has dropped to 72% from 84% last year
 Stockouts have increased for some SKUs while
overstocking has increased for others
Supply Chain of Days

Plant Depot Distributor Retailer


3 centralized One big 3000 Distributors
plants warehouse for one
area(city or Big-scale
combined few distributors:7-day
small areas) PDP

Small scale
distributors: 2-day
PDP
Demand Forecasting

 Time Series Forecasting can be used to accurately forecast demand for further
days
 The same can be then used to place orders
Time Series
Curve for
Different SKUs
for XYZ
Time Series
Curve for
Different SKUs
for UVW
Time Series
Curve for
Different
SKUs for RST
Time Series Forecast for Dec1-4 for
Different SKUs for XYZ
Time Series Forecast for Different SKUs
for UVW
Time Series Forecast for Different SKUs
for RST
Inventory Norms for XYZ
Inventory Norms for UVW
Inventory Norms for XYZ
Information to be updated on subsequent
days
 Mean of Sales
 Standard Deviation of Sales

Information not to be updated on


subsequent days
 Service Level
 Safety Stock Value
Addressing
Issues in the
Depot
through a
model
*Assumption: Quantity Available can be updated at each replenishment cycle

Truck Capacity: 25 units

Equal Priority for all distributors

At least 50% truck utilization

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