USE AND APPLICATIOS OF OPTIMIZING SELECTIVE INVENTORY CONTROL TECHNIQUES OF SPARES FOR A CHEMICAL PROCESSING PLANT (original) (raw)
Related papers
IJERT-Use and Application of Selective Inventory Control Techniques for a Chemical Processing Plant
International Journal of Engineering Research and Technology (IJERT), 2014
https://www.ijert.org/use-and-application-of-selective-inventory-control-techniques-for-a-chemical-processing-plant https://www.ijert.org/research/use-and-application-of-selective-inventory-control-techniques-for-a-chemical-processing-plant-IJERTV3IS100026.pdf This paper presents the implementation of an improved inventory management and control system of a chemical processing industry. Inventory management system involves the procurement, stocking, and issue of materials to the maintenance department as and when required. Inventory management is the main area in which many process industries are suffering. The work is concentrated on the inventory management problems of a chlor-alkali industry. The aim of this work is to design inventory models for such a system in a process industry. The existing system of inventory control of spares reveals that past data cannot be taken as the major decision criteria. The important decision making criterion related to spares is criticality, lead time and consumption value which need to be accounted for effective control of inventory management in the organization. Data are collected from various sources like log books, ledgers, annual financial statements and published articles of the company. Interview method is used to collect primary data regarding the existing inventory management system. ABC Analysis, selective ABC and VED analysis, lead time and service level are incorporated in order to obtain 3D models and suggestions were given to improve the inventory management of spares. The key performance indicators were also established to give benchmark operations. Simulation technique is used to obtain the optimum reorder quantity and minimum total cost, which are also analyzed in this paper.
Determination of parameters for inventory control of spare parts.
This work presents a case of study for the calculation of the parameters for inventory control for 6219 products being handled by the Distribution Centers (DCs) of a company that distributes engines and spare parts in Mexico. The analysis was carried out in one of the four business units in which this company is divided. This unit has two DCs in the east region serving to 140 customers and dealers, authorized and certified, that are located in six States of the Mexican Republic. To solve this case, the information of the demand of the customers assigned to each DC was compiled to re-calculate the inventory to be held in each one of the Distributors, avoiding stock - outs and transfers between DCs, or supply of products to customers who do not correspond to this zone. In previous studies it was demonstrated the occurrence of supply from other regions due to insufficient inventory. To determine the inventory policies, the ABC classification of the products was done in terms of the number of pieces. The results obtained were applied partially in the company to monitor and quantify the behavior and benefit.
2016
Study reveals there is still need for work and research with improved techniques for Spare Parts inventory management to optimize stocking cost and ensure in time availability of spare parts. We consider downstream plant of petroleum which includes Ethylene, Ethylene Glycol, Polypropylene, polyethylene & utilities located at same location of unit. E.g.: Reliance Industries in India & SABIC affiliates at Saudi Arabia. Since these plants include huge numbers of rotary equipment like centrifugal pumps, compressors with its subassemblies. Basic problem encountered for stock control and cost optimisation while working as inventory controller with industries includes: a) Situations, in absence of planned standard procedure for spare parts stocking system (SPS) leads to progressive deviations in the supply chain of spare parts since indenting to stocking in warehouse. This paper presents the implementation of an integrated selective inventory system named as Multi unit selective inventory ...
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...
Designing of Inventory Control for Aluminum Industry
JIE Scientific Journal on Research and Application of Industrial System
Inventory is one of important factors in manufacturing industry to ensure production process run. This research was conducted in an aluminum ingot manufacture company. The company faces a problem to manage the inventory system for their main raw material. The problem deals with the high expenditure due to safety stock that causes high inventory cost. Total inventory cost based on current condition is $270,706 per year. The proposed improvement method that used in this analysis is continuous review system. This method is applied to determine the appropriate Reorder Point (ROP) and to minimize the inventory cost. Based on the proposed improvement, total inventory cost can be reduced by 30%. This proposed system is also equipped with Decision Support System by using what-if analysis method as the tool to make decision for the next several periods by giving several scenarios and considering the aspects that influence to decision.Keywords: Inventory, Reorder point, Continuous Review Syst...
Industrial Engineering Journal, 2020
The purpose of this study was to improve the inventory management policy adopted by Dugar TVS Showroom, a well-known and authorized dealer of automobiles in Indore. The objective of this study was to identify problems in the inventory management of above mentioned firm and improving it in terms of investment, categorization of items, customer satisfaction by timely delivering what is needed and when by proposing an efficient and effective analysis. This study employs the procedure of inventory audit and uses Selective Inventory Control techniques to improve the inventory status at Dugar TVS, Indore. A survey has been conducted for inventory management at Dugar TVS showroom to improve their inventory management policy. This study uses systematic observation, mathematical tools and graphical representation in ABC analysis for categorization of items integrated with the tool of XYZ analysis and FSN analysis as project methodology. The improvement in inventory status has been executed by identifying the category of each item which is A, B, C and/or X, Y, Z and/or F, S, N. A combined study integrating ABC, XYZ and FSN analysis was also performed to provide a comprehensive solution of inventory classification which is most suited to the firm as per their requirements.
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.
Inventory constitutes the most significant part of current assets of larger majority of Nigerian manufacturing industries. Because of the relative largeness of inventories maintained by most firms, a considerable sum of an organization's fund is being committed to them. It thus becomes absolutely imperative to manage inventories efficiently so as to avoid the costs of changing production rates, overtime, sub-contracting, unnecessary cost of sales and back order penalties during periods of peak demand. The main objective of this study is to determine whether or not inventories in the Nigeria Bottling Company, Ilorin Plant can be evaluated and understood using the various existing tools of optimization in inventory management. The study methods employed include the variance analysis, Economic Order Quantity (EOQ) Model and the Chi-square method. The answer to the fundamental question of how best an organization which handles inventory can be efficiently run is provided for in the analysis and findings of the study. Consequently, recommendations on the right quantity, quality and timing of material, at the most favourable price conclude the research study.
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.
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