Chapter 4

Selective Lean Transformation Case-in-Point Examples

Case-in-Point Example 4.1 Dynamic Inventory Model

The company in this case story was a Fast-Moving-Consumer-Goods (FMCG) (a.k.a. Consumer Packaged Goods (CPG)). The company was a global manufacturer of personal care products, household goods, etc., which meant that these products typically sold quickly and had to be replenished quickly. And if for some reason a product was sold out (no stock on the shelf), a consumer had many options from competitors’ products to choose from, and/or a retailer might give the vacant shelf-space to a competing brand. So, stock-outs in a retail environment must be avoided; that’s one major reason why FMCG companies are known for having the best supply ...

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