Energizer Reduce The Risk Of Poor Sales Order

More and more companies are tend to purchase in advance to meet the various demand fm market, that is called make to stock (MTS) planning strategy. MTS would bring us more chances for sales, but also, more chances for creating slow moving SKU as well. Contrast to those fast moving SKU, the slow moving ones would cost more manpower and materials. Considering the unsalable risk in the earliest purchase stage so that to control the root cause of slow moving SKU comes to the subject of this thesis.Instead of producing instant results, optimized purchase strategy would cut down inventory level after running out several months. In this thesis, we will study in three aspects: forecast, safety stock factors & purchase period, will try to find out under what condition and how could they change to cutdown the inventory level.According to our analysis for Energizer two years sales data, considering the complexity of products category, selling area and marketing demand, the change for safety stock & purchase period are found to be more effective in optimizing the inventory level. In respect of forecast, consolidation of empirical & weighted average method is still the optimum method. Given acceptable order miss percentage, the cutdown of safety stock could opitimize inventory level of Energizer second-line products. For the main products, changing purchase period could cutdown the inventory level.