Solution: Using simulation, the team was able to evaluate some potential compromises under real-world conditions to find the best solution.
Results: The first suggestion was to share safety stock, but to allocate cycle stock to particular market organizations. This still didn’t provide satisfactory savings, but a second attempt showed that by sharing 25 percent of their cycle stock as well, the market organizations could still get 70 percent of the desired savings.
About the Solution Provider: LLamasoft supply chain design software helps organizations worldwide design and improve their supply chain operations. LLamasoft solutions enable companies across a wide range of industries to model, optimize and simulate their supply chain network, leading to major improvements in cost, service, sustainability and risk mitigation.
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