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Reducing Stockouts in FMCG Supply Chains through an Integrated Model of Replenishment, Forecasting and Supplier Management

Research output: Chapter in Book/Report/Conference proceedingPaper (Conference contribution)peer-review

Abstract

Frequent stockouts in fast‑moving consumer goods (FMCG) firms erode service levels and profitability in volatile Latin‑American markets. Objective—This study developed and validated an integrated inventory‑management model that combines periodic‑review (RP) replenishment, Winters exponential smoothing and multicriteria supplier segmentation to curb stockouts. Methodology—A Peruvian snack manufacturer was analyzed; logistics KPIs were recorded, the model was simulated in Arena Simulator V16, and a pilot with two strategic suppliers validated field performance. Key Results—Simulation lowered the stockout rate from 18.2 % to 3.8 %, raised the fill rate from 81.8 % to 96.2 % and boosted capacity utilization by 28.1 % without extra cost. Pilot results confirmed on‑time deliveries improved from 96 % to 98 % and supplier fill rate from 84 % to 90 %. Conclusion—The model closes the research gap on integrated RP–forecasting–segmentation approaches in FMCG supply chains, offering a transferable, sustainable framework adaptable to other high‑variability industries.

Original languageEnglish
Title of host publication2025 11th International Conference on Innovation and Trends in Engineering, CONIITI 2025 - Conference Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Edition2025
ISBN (Electronic)9798331591328
DOIs
StatePublished - 2025
Event11th International Conference on Innovation and Trends in Engineering, CONIITI 2025 - Bogota, Colombia
Duration: 1 Oct 20253 Oct 2025

Conference

Conference11th International Conference on Innovation and Trends in Engineering, CONIITI 2025
Country/TerritoryColombia
CityBogota
Period1/10/253/10/25

Keywords

  • Demand Forecasting
  • FMCG Supply Chains
  • Inventory Optimization
  • Periodic Replenishment
  • Stockout Reduction
  • Supplier Segmentation

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