Applying Lean Practices in a Plumbing & Heating Distribution Industry

Manager: Dr. Amr Mahfouz
Contact Email: amr.mahfouz@dit.ie

Problem:

Irish construction sector and plumbing and heating (P&H) merchants are still negatively affected by the sudden burst of the property bubble in 2008. Smart inventory management is seen as necessary factor to help P&H distribution companies to cope with such economic pressure. P&H distribution is characterised by the large number of items and the different global sources in the supply chain. Due to the uncertainty of supplier lead-times, demand fluctuation, changeable prices and high shortage cost, the strategy of keeping safe inventory level for fulfilling unexpected demand is currently applied. However, achieving a balance between minimising inventory cost and keeping on time service level at an optimum point is a challenging task.

Objectives:

• Understand the influence of different customer management strategies on inventory cost and customer satisfaction level.
• Modelling the complexity and the stochastic nature of P&H distribution system supporting decision makers in identifying orders quantities and safety stock levels.

Outcomes:

A smart simulation-based inventory model for P&H distribution industry.