Decision support system to improve spare parts supply chain performance for a major car manufacturer
Denizel, Meltem and Erdoğan, Hakan and Kılıç, Kemal and Özdemir, Mahmut Nedim (2009) Decision support system to improve spare parts supply chain performance for a major car manufacturer. (Submitted)
A major car manufacturer’s Spare Parts Logistics Department collaborated with Sabanci University in order to improve the performance of its spare parts supply chain of various brand automobiles and light commercial vehicles. The project team developed a decision support system that forecasts demand and calculates optimal inventory levels for the original equipment manufacturer (OEM) and for its dealers by considering factors such as seasonality, customer service levels, and the turnover of parts. The system also generates 16 week order provisions of the OEMs for its suppliers. The OEM is one of the leading automobile manufacturers of Turkey, its global supplier network, 81 national dealers, and hundreds of small auto repair shops which spread all over Turkey. With the new system, the OEM Spare Parts Logistics department has improved its service level from 64% to 85% without increasing average inventory level.
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