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Inventory optimization

April 06, 2016 6609 Views


PK Oem parts is a respected supplier of spare parts since 1981 within a niche market of shipping and power plants. Sales and distribution of high quality technical parts is done on a global scale. PK Oem parts stands for high quality, fast delivery and competitive prices. PK Oem parts operates from the headquarters and two warehouses in Dordrecht with about 20 employees.

A prior study performed by Groenewout identified an opportunity to reduce the stock. Therefore, PK Oem asked Groenewout to minimize the stock levels while maintaining the high service level demanded by its customers.

Using statistical analysis the demand characteristics for the shipping and power plants markets where assessed. Based upon the demand characteristics and the service levels, the min-max stock levels optimized. Furthermore, a strategy was developed on how to update the stock-levels on a strategic, tactical and operational level.


  • Potential stock reduction of about 25%, while maintaining the current service level;
  • Advice on how to update the optimized stock levels within the ERP system, based upon the forecast error and demand volatility;
  • Implementation of a dashboard with stock and service level KPI’s connected to a balanced scorecard.