| A Supply Chain Management System in a Pharmaceutical Company A case study at Bayer Dr. Rudolf Metz, Dr. Georg Mogk, Hanjo Rossi, Dr. Phillip Schlichthärle, and Dr. Franz-Josef Tölle Bayer Technology Services, Leverkusen (Germany)
A basic ABC/XYZ analysis of inventories was done at Bayer Health Care (BHC) as well as the whole Bayer company. This identified candidates for a significant reduction of inventories. An event driven simulation assured that despite the reduction of inventories the requested service grade is reached. The simulation accounted for all relevant constraints such as production capacity, equipment availability, lot sizes and reject rates. Demand forecasts and production orders have been generated from historical data. However with simulations of this type, only a restricted number of scenarios can be investigated. In a next step the Bayer developed system TIPOPT optimises the complete supply chain with several production and distribution echelons by determining the cost optimal inventories at a given service grade. To do so the safety stock is optimally allocated among raw materials, intermediates of all echelons and finished products in distribution centres. Lot sizes, delivery times, production capacities etc. are accounted for.
Key words Complete supply chain • Inventory analysis • Inventory optimisation • Production capacity • Service grade |
