Abstract
In today’s competitive environment, the pursuit of effective approaches and novel technologies is a key driver for business success. Meanwhile, the coordination of internal and external processes with suppliers and customers is an effective solution for cost reduction, continuous quality improvement, and comprehensive risk management. Therefore, this study proposes a conceptual framework for coordinating and improving supply chain planning workflows using the capabilities of the SAP-ERP solution. The framework encompasses a joint vendor-buyer mathematical model to determine the optimal lot size and purchase quantities. It also provides a heuristic procedure for determining dead-stock in the distribution network. The recommended approach has been applied in a company in the fast-moving consumer goods industry. Key performance indicators, such as inventory volume and inventory turnover rate, were meticulously measured before and after the implementation of the framework. The results show a significant improvement in performance measures, including average total inventory and average inventory turnover, and a considerable impact of using the proposed framework.
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