A review of the forecasting and ordering methodologies used at FCL to control stock wholesale inventories.
Federated Co-operatives Limited (FCL) had total annual sales of over $2 billion with net savings of 4130 million in 1995. "Stock" sales of $850,000,000 were delivered out of its distribution centres (DCs) in Winnipeg, Saskatoon, Calgary, and Edmonton to over 300 retail cooperatives across western Canada. Product lines include food, general merchandise, crop and animal supplies and tires items. On average $110,000,000 of inventory was carried at these four DCs in 100,000 stock keeping units.
The Operations Research Department of FCL assists in the management and control of this inventory investment by providing computerized forecasting and ordering systems which maintain the lowest possible inventories subject to maximizing service levels to our retails.