HEINEKEN Flexbrewery

Analysis of the impact of small batches on the supply chain and simulation of different replenishment strategies

Master thesis (2018)

Authors

T. van der Heijden Civil Engineering & Geosciences

Contributors

R.R. Negenborn (supervisor 1)
J Vleugel (supervisor 1)
Rob Tummers (supervisor 1)
Faculty
Civil Engineering & Geosciences
Copyright: © 2018 Thomas van der Heijden
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Published Date

22-10-2018

Language

English

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Faculty

Civil Engineering & Geosciences

Abstract

The last years craft beer is becoming more and more popular. Heineken responses to this trend in different ways. The last gap in this strategy is offering local brands to the market. In order to do so they have to reduce their batch size. This research looked into the impact of smaller batches on the supply chain. The first conclusion is that local brands also need to follow a make to stock strategy to fulfil customer demand. Then three alternatives in inventory management were simulated to make a trade off between service level and cost. The final conclusion is that a it seems best to keep safety stock for fast movers and no safety stock for slow movers, but it depends on how service level is valued.