Inventory Aging: An Impediment to the Value Chain - A Case Related to the Automotive Industry (original) (raw)
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Inventory Management-A Case Study
As a result to today's uncertain economy, companies are searching for alternative ways to stay competitive. This study goes through the process of analyzing the company's current forecasting model and recommending an inventory control model to help them solve their current issue. As a result, an Economic Order Quantity (EOQ) and a Reorder Point was recommended to help them reduce their product stock outs. The shortage of raw material for production always makes the process discontinuous and reduces the productivity. The ABC analysis technique for the inventory control system is first used to identify the most important multiple products and then the economic order quantity (EOQ) of each product is developed to find their inventory model equation individually.
Inventory management system : case of fast moving automotive service parts
2006
continuous support throughout the thesis since starting creating an idea, raise the proposal, implement the data and finalized the result. He always promptly listened and gave me advice. He is expert in inventory management and has many experience background knowledge in different kind of products in inventory management. He guided me to have a right way thinking concept reasonably and how to approach a research problem. I also thank my minor advisor and being committee at the same time, assistant professor Dr.Paveena Chaowalitwong who gave me advice for the solution in case mathematical model is inadequate. She advised me a clearer picture in the fact of inventory problem. She is also the expert lecturer in inventory management. Another special thank is to Dr.Thantat Mokkamakkul who is the chairman of thesis committee. Without this approval and support, my thesis might not be able to complete successfully. Besides my advisors and committees, I would like to thank my my family: my mother for being my inspiration in Master Degree Study, my brother in giving me a comment and provided some guidance, my husband who always being my side and helped me to find out mathematical models. I hope that my thesis would be useful for anyone who is interested in inventory management. Last but not least, my thesis might not be successful if I haven't got a support and encouragement from my classmates; Jeab,
2017
The inventory management is one of the most important activities in supply chain these days. It requires a lot of investment for the company, such as storage space and other carrying cost. The inventory can be damaging to the company's financial health and competitive edge. To get a well-managed inventory is not easy. There are many models for inventory level and cost improvement. TJ Company is a machine maintenance service center in Thailand that has a high variety of inventory spare parts. With the lack of knowledge of inventory management and communication across functions, TJ Company has been facing the problem of spare parts inventory being overstock and shortage. It causes the company to carry an unnecessary high inventory cost and low level of customer service. This study will help the company determine its optimal level of spare parts inventory by using ABC Analysis and Moving Average demand forecasting. ABC Analysis is a model that classifies the products into three groups (A, B and C) based on dollar value. It uses the concept of 20% of total product units, of which contributes 80% in dollar value of the total product value. It shows the company which products have high value and thus should be focused on. For this method, TJ Company could give attention to the right items as Class A and B only which 28 items from 91 items. Moving Average Model uses the historical data of demand to average moving to forecast the demand. This model helps determine the maximum inventory level in yearly period for the company. The result, TJ Company could reduce the total inventory cost at least 238,585.30 Baht in the year 2016. Also, this study will provide the recommendation for improving inventory management and preventing lack of communication across function, such as store area arranging, monitoring and controlling for inventory, and working process arrangement. vi
A Manufacturing Industry Case Study: ABC and HML Analysis for Inventory Management
International Journal of Research in Engineering, Science and Management
This article is a contextual analysis of ABC and HML examination of inventory control methods for an effective Inventory administration framework in the assembling business of India. The organization needs to control its inventory expense, so it utilized various kinds of inventory methods to control this. There are various strategies, for example, ABC, HML, VED, XYZ and S-O-S. In the ABC analysis, things are classifications in classifications A, B, C as per the utilization of the all-out expense. In the HML analysis, things are classifications in H, M, L classification as per the unit cost. Information assortment is chiefly a year through the head supervisor of the store and other work force associated with the Inventory control activity of the assembling business.
Inventory management using both quantitative and qualitative criteria in manufacturing system
The success parameters for any company are on time completion, within specific budget and with requisite performance. In particular an efficient and effective inventory management helps a firm maintaining competitive advantage, especially in a time of accelerating globalization. From this point of view several organizations employ the ABC analysis to have an efficient control on a large number of inventory items. With the increasing levels of integration in manufacturing and service systems conventional ABC analysis is limited because it accounts for only one criterion, mostly "annual dollar usage", for classifying inventory items. To alleviate this shortcoming, this paper proposes a modified version of ABC analysis and Cross Analysis based on Analytic Network Process, a multicriteria approach, that allows to consider several criteria all at once for the optimal choice of materials management.
Examining Inventory Management for Spare-Part Warehouse
2021
Spare parts availability becomes crucial to support maintenance tasks, especially for the continuous process industry. The main purpose of this research is to examine several methods of inventory management that may suitable for spare parts. Examining the demand pattern of the spare parts utilize ABC and ADI-CV classification useful for understanding the type of demand. Spare parts mostly displayed a lumpy pattern, which guides to the possible inventory methods. In general, the three inventory methods: continuous review, periodic review, and reliability-based methods, provide better performance compared to the existing min-max method currently applied. The higher service level and the lower inventory cost demonstrated by the three proposed methods with no always dominant methods in all cases. Moreover, the reliability-based method provides better performance. The possible reasons due to careful attention to the demand i.e. the optimal replacement policy. This will keep the spare par...
Inventory Management Techniques: Optimizing Plant Operation in a Manufacturing Industry
International Journal of Computer Engineering in Research Trends, 2018
The main objective of this paper was to study the inventory management techniques and analyze the pros and cons of the existing technique and if needed, suggest a better-suited technique. The paper also sketches a background on the various costs involved and general inventory management techniques followed. The study uses a descriptive research design. The area of the study was a mechanical industry which produces valves, located in Chennai which is located in the Ambattur Industrial Estate. The inputs from the respondents were collected using a questionnaire and an interview guide. Secondary information was collected from different sources like; textbooks, internet, newspapers, magazines, and journals. The researchers obtained information from the staff and some clients who order directly from its premises. The sample size consisted of 50 respondents. The gender and age compositions of the respondents were established to eliminate any bias, in case of any. The results from the questionnaires and personal interviews were tabulated and analyzed and a relationship between the inventory management technique employed and performance was established based on the opinions of the respondents. A majority of the respondents agreed to positive relationship between the technique and performance of the company. A few respondents indicated inventory management as having a negative relationship on the performance. These same respondents believed that, inventory management involves a lot of costs, inconsistency as there is overcharging of customers, use of highly skilled workers in charge of managing inventories, theft, obsolescence among others all of which increase on the costs hence reducing much of the on the performance of the organization in question especially in the production department.
An ABC Analysis Model for the Multiple Products Inventory Control ----A Case Study of Company X
Company X is a small manufacturer in Thailand that produces hundreds of small joint hinges or lockers for the home furniture around the world. The company usually orders mass different raw material irregularly and causes different raw material inventory shortage for the multiple products manufacturing process. The shortage of raw material for production always makes the process discontinuous and reduces the productivity. To solve this problem, this paper intends to study a raw material inventory control model for the most important multiple products production in the company X. The ABC analysis technique for the inventory control system is first used to identify the most important multiple products and then the economic order quantity (EOQ) of each product is developed to find their inventory model equation individually. Using the regression technique, the raw material inventory control model for the important multiple products is constructed. The result of regression model analysis shows a goodness of fitting to the selected important multiple products and would expected to avoid the raw material shortage problem and help to organize the complicate inventory control system for company X in the future.
Review of Inventory Management System to Ensure the Optimization of Resources
IRJET, 2022
The inventory management system includes procedures for construction, transportation, identification, storage, and retrieval. Each has an unbreakable connection to productivity, schedule performance, and safety. Our study's primary objective is to examine the inventory management practices used and the efficient use of inventory at the construction site. One of the most utilized methods for classifying inventories and gathering data for a case study on a company is ABC analysis. The model is able to deal with both uncertain demand and supply. These results may primarily reflect the key elements that will have an impact on the inventory management system that can result in improved project management effectiveness & decreased material waste in the relevant construction industry region.
Today, the effective inventory management plays an im-portant role in the success of the organizations in the new business environment. It is not clearly possible for the organizations that store hundreds of inventory items to economically design an inventory management policy for each inventory item separately. Moreover, various inven-tory items may play quite different roles in the business of the organization. Hence, the managers need to classify these items in order to control each inventory category properly based on its importance rating. This research is composed of the following sections: In the first section, the criteria affecting the evaluation of the inventory control system of the studied factory and the priority of each one of them will be identified, in the second section, the prior-ity of each criterion in each inventory category (A, B, C) is calculated using the analytical hierarchy process, in the third section, a mathematical model will be presented to evaluate th...