Supply chain losses in brewing industry
Tran, Loan (2019)
Tran, Loan
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019111421182
https://urn.fi/URN:NBN:fi:amk-2019111421182
Tiivistelmä
Beer is the alcoholic beverage which is most widely used in the globe nowadays. Brewing industry is expected to increase to $685,4 billion in 2025, yielding a compound annual growth rate of 1,8%. The growing interest of customer brings potential and also challenges to the industry. For instance, more demanding customers in terms of taste, flavor and freshness drives brewers to run a race of “premiumization”, in which they offer new premium products to attain more market share and enhance competitive advantage. Another instance is the seasonality, in which specific products in specific format are produced to serve in certain occasions. These prevailing trends coupled together, resulting in the number of stock-keeping-units (SKUs). This consequently implies the supply chain losses.
The objectives of the study were to investigate where losses stem from and how to mitigate these losses. To achieve the objectives, the study used both qualitative and quantitative approach. First the relevant literature of sales and operations planning was re-viewed, and then a case study about a beverage company was investigated. Within the case study, production planning and material requirement planning were carried out.
The analysis of the case showed that losses always remain in form of either stock holding or stock out costs. Losses can be ascribed to different contributing factors, i.e. the diversification of products, failure in capturing a bigger picture in production planning, supplier’s order lot size and performance, and demand variation.
The study also recommended ways to mitigate losses, such as facilitating a more flexible production model, adopting a wider perspective in production planning, enabling smaller order lot size, keeping trace of supplier’s performance and shift in demand pattern.
The objectives of the study were to investigate where losses stem from and how to mitigate these losses. To achieve the objectives, the study used both qualitative and quantitative approach. First the relevant literature of sales and operations planning was re-viewed, and then a case study about a beverage company was investigated. Within the case study, production planning and material requirement planning were carried out.
The analysis of the case showed that losses always remain in form of either stock holding or stock out costs. Losses can be ascribed to different contributing factors, i.e. the diversification of products, failure in capturing a bigger picture in production planning, supplier’s order lot size and performance, and demand variation.
The study also recommended ways to mitigate losses, such as facilitating a more flexible production model, adopting a wider perspective in production planning, enabling smaller order lot size, keeping trace of supplier’s performance and shift in demand pattern.