Role of Line Delivery Performance in Supply Chain Management : Safety Stock, Reorder Point, FIFO, Service Level

Supply chain management is increasingly becoming a vital subject among modern managerial method since it reduces operational costs, improves delivery performance and increases customer satisfaction. Delivery performance is the key measure of supply chain performance and is measured by verifying how many lots or order lines are received as promised. In Aerospace industry on time delivery is essential because the cost of non-availability is huge when compare to other industries. The key objective of this project was to improve the line delivery performance of 'Cargo Systems', that analyzes demand variability, lead time variability, inventory costs and service level. In addition to that appropriate techniques were adapted to issue the oldest product in the stock first (a First-In-First-Out approach). Visual control techniques were employed to improve the inventory visibility and reduce ageing of chemical parts. To monitor employee performance in stores a performance analysis system has been implemented.