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Agarwal Automobiles: Fuel Station Forecasting and Inventory Management
內容大綱
On June 1, 2016 a student was preparing for a summer job with Agarwal Automobiles, a vehicle fuel station owned by his father. The student had taken courses that covered supply chain management, including inventory management and forecasting. His father had suggested that, as a summer project, the student examine the fuel station's retail inventory management practices with the intention of replacing the current simple rules with a more rational and complex planning model. The student needed some ideas to use as a guide toward a better ordering policy. The available data for the previous six months suggested that the company held an average ending inventory of ₹2.1 million worth of fuel products to maintain average daily sales of ₹0.52 million. The challenge was to reduce the inventory levels, while maintaining a high customer service level in fuel sales.