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Development of product life cycle model in supply chain with a bonus of 90.000 DKK if implemented

FTZ

Project description

Description 

FTZ is the largest player in the auto-part and tool industry in Denmark with more than 1000 employees in 52 branches. Since 1962 when company was founded it has grown nationwide through acquisitions takeovers and mergers with other companies expanding also to the Faroe Islands.

The company is fully dedicated to pushing supply chain to perfection. The lead-time to customers is around 2 hours and in several places it is possible to be supplied with up to 8 times per day via an ingenious system that makes FTZ incredibly efficient. The purpose of this system is to support the repairers so that FTZ warehouse becomes an extension of their shops. Our just-in-time delivery is a key for an efficient workshop operation.

Objective 

We currently present our customers with a catalogue of approximately 400000 products (SKUs) of which we have about 120000 on stock. The 280000 SKUs that we do not have on stock are primarily products that only sell in small numbers either because they are related to new car models that are not established in the market yet or because they are related to old car models that only exist in small scale.

We create between 1000 and 2000 SKUs on a monthly basis and the surveillance of the life cycle for each SKU is done manually. Hence we are usually late with regard to the shift between the product life cycle phases. Consequently we do not exploit the sales potential fully and we have too many storage costs.  

We would like you to develop a product life cycle model as shown in Figure 1 based on our extensive historical data namely parts sales data number of active cars in the market and other.  One of your challenges will be to define relevant parameters in the model and refine suitable data to base the model upon.

The model should identify the products for which a shift to the next life cycle phase is relevant. This in turn will potentially increase sales and customer loyalty on one hand and lead to reduced space need and reduced risk for obsolescence on the other hand.

Expectations & reward

Our team sees great potential in using the model in daily operations and that is why we are ready to invest resources in supporting you through out the project to ensure good results. At the same time we expect you to be ambitious independent talented and passionate about the matter.  Ideally we would take a group of two Master students having the skills in the areas like: supply chain statistics economics mathematics or alike. We might also form a team of students out of single applicants.

In addition to testing your skills in a real life setting and gaining invaluable experience we are also ready to set a 90.000 DKK bonus if you were to implement your developed model in our company.

Development of product life cycle model in supply chain with a bonus of 90.000 DKK if implemented | Match My Thesis
Deadline
Oct 30, 2015
Degree
Masters'
Location
Register

Keywords:

Product life cycle model

Supply chain

Operations

Data analysis

Forecasting