Safety stock models have been developed for traditionally short lead-time supply chains. With globalisation, long lead-time complex supply chains have become the norm for multi-national organisations. Customers have evolved and are expecting better supply reliability at lower costs. The research investigates the need for developing new safety stock models that adapt to the changing global supply chains and customer needs and can optimally absorb supply and demand variability. The new safety stock models should ensure promised customer service levels. Sasol Solvents, a chemical commodity company, was used as the basis for the research. The organisation has global distribution hubs in four regions with unique location based constraints. The sales and supply chain personnel in these regions participated in the research. It was found that the current safety stock models exclude applicable variables that are needed to determine the optimal safety stock levels in a long lead-time supply chain. This exclusion causes sub-optimal safety stocks, which result in lower customer service levels. New safety stock models should therefore be developed that contain these variables identified and should be adaptable to the evolving changes in customer preferences and supply chain configurations. The new models should ensure the optimisation of profitability for global organisations. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:up/oai:repository.up.ac.za:2263/24586 |
| Date | 12 May 2010 |
| Creators | Snyders, Louis |
| Contributors | Mr B Beyer, upetd@up.ac.za |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Dissertation |
| Rights | © 2009 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
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