Philip Morris Sabancı – Inventory and Order Management of Common Production Materials of Different Plants

Grup Supply Chainsmokers: Burak Tugay Başakçı, Onur Bülbül, Gonca Kahraman, Çiğdem İpek Kantarcı, Büşra Tunçelli

Philip Morris International, which has 48 facilities in 32 countries, has been operating in cigarette sector in Turkey since 1991. The facility, in partnership with Sabancı Holding, has an annual production volume of 70 billion stick cigarettes and produces for Turkey and foreign markets under the name of PHILSA. Purchasing Department, with which the project is conducted, is responsible for the material procurement operations of Turkey, Jordan and Senegal production facilities. Problem indicators such as lack of utilization of scale economics in the existing ordering system, high expedited transportation costs due to short-term production plan changes, and materials being scrapped are observed. The scope of the project includes improving stock and ordering system by assessing operational uncertainties, inventory targets and current constraints arising from suppliers.