The Challenge
Multi-branch retail operation with 500K+ SKUs experiencing high stockout rates, inconsistent demand patterns across locations, and suboptimal inventory levels leading to lost sales and excess holding costs.
Our Approach
- Conducted comprehensive data analysis of 3-year sales history across all branches
- Implemented ABC classification system at branch and SKU levels
- Developed branch-specific demand forecasting models using regression analysis
- Created safety stock optimization framework with service level targets
- Established automated reorder point calculations based on lead time analysis
- Designed inventory performance dashboard for ongoing monitoring
Analytical Methods Used
Time Series Analysis
ABC Classification
Linear Regression Forecasting
Safety Stock Optimization
Service Level Modeling (CSL)
Lead Time Analysis
Economic Order Quantity (EOQ)
Key Outcomes & Results
- Reduced forecast error by 35% through improved statistical models
- Decreased stockouts by 40% while maintaining inventory levels
- Improved inventory turnover by 25% across all branches
- Optimized working capital investment with 15% reduction in holding costs
- Established repeatable forecasting process for ongoing operations