The firm sought to leverage a portfolio of vendors by using a supply chain strategy that exploited lower cost production for the more predictable segment of demand and sourced the speculative segment using more flexible, but more costly, vendors. This was a nontrivial proposition for managing capacity, inventory, and shipments for an assortment of retail products produced by multiple vendors. An optimisation model was developed that maximised the retailer's expected gross profit, given demand fo...

BPIR Categories

2.2.4 Formulate and review business unit strategy
6.2.4 Purchase materials & supplies

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