Optimizing Cycle Time and Inventory Costs: A Volatility Analysis and Pull Strategy Approach in Inbound Supply Chains

The purpose of this paper is to analyze the inbound materials’ inventory of conventional supply chain to address the issue of un-necessary stocks lying at manufacturing site, to reduce the cycle time in order to improve the product shelf life at the time of receiving and improve its availability when required by implementing pull strategy using volatility analysis.
The aim of this paper is to find an optimal inventory solution that operates with minimum cost, minimizes forecast disruptions and meet the customer demand accordingly. In this paper, the analysis was performed to see the variability in the data i.e., actual consumption of materials over time by removing the outliers in the data and then optimizing the inventory parameters derived from actual requirement based on this analysis.
This research exhibits empirical proofs which show that when the supply chain is based on pull strategy, benefits can be achieved, and the process will be more efficient. The results generated are improved safety stock levels, reduced cycle times resulting in efficient operations, improved material availability and reduced inventory costs.