Inventory Planning Decision Support System for the Supply Chain Department

Group Breaking Co-Packs: Sena Boyacıoğlu, İrem Selin Çağlar, Betül Çahan, Fatih Öztürk, Serkan Sağlam

The journey of the Unilever starts with the merges of Margarine Unie, the Dutch margarine producer, and Lever Brothers, the British soap maker, in 1930. The company which invested firstly with Sana factory in Turkey in 1952, currently has 8 factories in Turkey which export to 34 countries. In Turkey, Unilever reaches 51 million customers in every month by meeting their home care, personal care and nutrition needs. The aim of our project is to develop a decision support system to improve inventory planning of the materials of personal care co-pack products. For this purpose, an inventory model which manage inventory in terms of safety stock, target stock, reorder point and order-up-to level is developed after examining the data obtined from the company. The model is construced with the help of Excel Software since it is the most widely used software in the company. In addition, a simulation model is built in order to make sensitivity analysis of the parameters selected by the user on the safety stock levels and inventory holding costs. The inventory model is validated with the help of the simulation model and a projected saving of 1.2 Million TL is observed for the inventory holding cost of April 2015.