18. Distribution Problem
• Large Number of product
– Dry: 800 different package of SKU
– Pasta: 200 different sharp and size and 470 different package.
• Different size and shape of product need different time
• Promotion
– Price and Transportation: discount
• No forecasting system
– Simple periodic review the inventory
– Follow the replenishment ordering
• Fluctuate product order
• Distributor manage their own if inventory
• Lack information from distributor and retailer
• Manufacturer wait the order from distributor
19. Distribution Problem High Inventory Level And Stock-out
20. Distribution Problem
• High Inventory Level:
– Labor cost: administrative, tracking and tracing…
– Cash flow: cash will hold in the inventory, not in business
– Carry cost: product expire, insurance, inventory cost
• Stock out
– Lost customer
– Lost sale opportunity