Inventory, Distribution and Value-Added Activities Analysis – UL05-GLTZ

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Inventory, Distribution and Value-Added Activities Analysis – UL05-GLTZ

This research analysizes ordering policies and inventory of a process to determine if there needs to be a change in the ordering procedures.


N. Glantz & Son

Research Team:

Gail W. DePuy, John S. Usher, Maria Chiodi, Gerald W Evans

Universities Involved:

University of Louisville

Start Date:


End Date:



In this research the objective was make a historical data analysis at N. Glantz & Son and compare current operating procedures versus ordering mainly through Central (that is everything except what is shipped between the branches themselves). This analysis uses several simplifying assumptions to get a high-level view of recommended ordering procedures by the branches.
The N. Glantz and Son’s distribution system for signage supplies, consists of approximately 300 active vendors, one distribution center (located in Louisville), and 19 branch offices (located throughout the continental US). The system distributes approximately 5000 different SKUs organized by product line. Questions addressed by the project include:
* Should the DC be enlarged?
* Should the Branches order stock through the DC, or directly from the vendor (for specific product lines)?
* What should the reorder points and reorder quantities be (at each branch and the DC) for SKUs?
* Is there a better shipping schedule?; if so, what would it be?
* How would changes in demand patterns at the branches affect the optimal values for the control variables?
The results of this analysis give a vendor-by-vendor recommendation for maintaining the current ordering procedures versus changing to ordering through the central distribution center. More results can be found in the final report.