Optimising startup manufacturer’s supply chain: analysis and inventory system design

Abstract

The study addresses the challenges a startup manufacturing company encounters amid expansion, primarily due to inconsistent production levels and inadequate inventory management practices. It investigates carefully identified scenarios to enhance supply chain efficiency and evaluates the feasibility through financial analysis. Additionally, a basic raw material inventory management system is designed to ensure an adequate supply of raw materials for continuous production. A ten-step scenario analysis methodology is used to complete the scenario analysis, complemented by the DMADV methodology to design the inventory management system. The scenario analysis yielded that investing in new machinery is the optimal expansion strategy. The inventory management system effectively tracks raw material and finished goods inventory levels with additional useful features. This study provides insights into overcoming challenges in the startup manufacturers' supply chain and lays a foundation for further refinement of the supply chain.