This capstone project presents a comprehensive inventory management and replenishment strategy developed for Cordis, a U.S.-based manufacturer and distributor of cardiovascular equipment. The project focused on optimizing inventory policies at the Global Distribution and Replenishment Center and the Logistics Service Provider (LSP) for the Europe, Middle East, and Africa (EMEA) region. A tailored methodology was developed using demand segmentation, safety stock calculations, and a combination of continuous and periodic review policies. To evaluate performance, the team modeled eight replenishment scenarios under two safety stock strategies: a proposed formula-based approach and Cordis’s current five-weeks-on-hand policy. Among these, Scenario 8 emerged as the optimal strategy, applying a continuous review policy for high demand SKUs and periodic replenishment cycles of six and four days for medium- and low-demand SKUs, respectively. This configuration achieved a 35% reduction in operational costs compared to the baseline, while maintaining service level targets. Simulation and inventory analyses further validated that the proposed approach effectively balances cost efficiency with supply chain responsiveness. The results offer Cordis a data-driven, scalable framework to reduce inventory costs, improve performance, and support long-term supply chain resilience.
