Distribution control at Exhaust Systems Europe

Discusses the selection of distribution control techniques for a manufacturer of exhaust systems. A method for this selection process is proposed and worked out for the case study company. Argues that selecting one control technique for a complete company is not advisable. Distribution control should be differentiated to clusters of products that have a similar set of product, process and market characteristics. Shows, furthermore, that the question as to whether central stock should be kept depends to a large extent on the production frequency. Also discusses selection of distribution control techniques and states that it is important to take account of the fact that an ABC classification of an item on a European level may differ from the classification of the item on country level. Finally, argues that the use of appropriate control techniques may significantly reduce handling costs.