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Overstock and stock-out in Volkswagen Autoeuropa
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The following work is a case study of overstock and stock-out problems at Volkswagen
Autoeuropa (VWAE). It introduces the supply chain of Autoeuropa and specializes then
on failures connected to inventory problems. Having a successful supply chain is
important in a world where products become more and more similar as it can give to
companies an edge over their competitors. The case shows three practices that VWAE
uses to prevent and to overcome stock problems. Information was gathered by doing
interviews with different managers, by analyzing the company’s key processes and by
literature research related to the topics of supply chain management and flexibility in
the supply chain. Three practices were further investigated: the use of alternative parts,
support of the supplier and a rating system of suppliers. In the question section of this
work the importance of flexibility and Supplier Relationship Management (SRM) when
connected to supply chain management are explained. The described different practices
are numerically analyzed and it is concluded that each practice brings both cost savings
and the possibility of achieving target numbers to the company, showing the company’s
flexibility to react to supply chain disturbances.
Because of confidentiality reasons, persons in the case are fictionalized and numbers are
wherever possible equalized to 100 in order to display true proportions.