A Review on Inventory Management System at Manufacturing Organization (original) (raw)

An Informative Literature Review on Inventory Control System

Journal of emerging technologies and innovative research, 2018

In supply chain management inventory control is a challenging problem. To fulfill customer demand , companies require to have sufficient inventories in stock meanwhile these inventories have holding costs and this is frozen fund that can be lost and burdens the company’s account. Therefore, the task of inventory management is to find the quantity of inventories that will fulfill the demand, avoiding overstocks. In the present paper , an attempt is made to provide an up-to-date and complete review of existing literature, concentrating on descriptions of the characteristics and types of inventory control models that have been developed by Indian as well as Foreign authors. KEY WORDS-Inventory Management, Survival, Working Capital, Liquidity and Profitability, models under uncertainty, EOQ, EPQ. INTRODUCTION The word inventory refers to the goods or resources used by a firm for the purpose of production and sale. Inventories include the matter, which are used as helpful materials to ea...

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.

Comprehensive approach to the inventory control system improvement

Management and Production Engineering Review, 2012

The methodology describes the optimal procedure for the application of basic analytical methods and tools in practice. The results of the analysis are in the algorithm linked to the subsequent actions realized to improve inventory management system and to minimize inventory level in the company. Described procedure is the result of methodology examination and verification in practical conditions of production enterprises. In the following sections of this paper, there are presented a comprehensive approach to the inventory analysis and the own algorithm, which contains 3 phases: inventory analysis on enterprise level, summary analysis of individual item groups and individual analysis of material items. In the last section, there are described examples of results from such analysis and conclusions. The presented approach is an attempt to create a universal procedure of analysis which integrates methods and tools described in various publications.

Case Study on Inventory Management Improvement

– Inventory management is a challenging problem area in supply chain management. Companies need to have inventories in warehouses in order to fulfil customer demand, meanwhile these inventories have holding costs and this is frozen fund that can be lost. Therefore, the task of inventory management is to find the quantity of inventories that will fulfil the demand, avoiding overstocks. This paper presents a case study for the assembling company on inventory management. It is proposed to use inventory management in order to decrease stock levels and to apply an agent system for automation of inventory management processes.

Analysis of Inventory Control Techniques and Study of Non Conventional Parameters

International Journal of Engineering Research and, 2015

This paper aims to review the basic principles of inventory control and reduction in material handling costs by discussing traditional techniques and parameters which influence them. It aims to define the relationship between production and distribution and the use of technology to serve this relationship better. It also aims elucidate various flaws in the typical techniques and provides solutions to the same. It introduces RFID technology as a realistic technical tool which can help serve the supply chain more efficiently, with better balancing of resources and by acting as a continuous source of information. It also outlines the importance of customer feedback on the sales and reputation of the company and its goods. With better visibility in a supply chain, several positive changes can be brought which can redefine the operations and investments involved.

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.

Inventory Management Pattern of Manufacturing Sector in India

Business motives are to produce, sell & make profit. Inventories are playing vital role in every business whether industrial unit of trading organization. Thus this study acquires utmost importance, inventory can be broadly defined as the stock of Goods, commodities or other economic resources they are stored or reserved at any given for future production. Research design adopted in this study is analytical. The study makes secondary data which is collected from the following sources such as Company's magazines, books, journals etc. The main objective of the study is to minimize the investment in inventories by exercising selective inventory control techniques, analyse the performance in inventory management in TIDC INDIA, to review the system of inventory model &re-order level of raw material, to find out the Economic order Quantity & to determine the optimum level of safety stock & to fix reorder point. Tools used in this study for analysis are alwaysABC, HML, Correlation, Safety stock, Trend analysis. The company should follow a delivery schedule for cutting tools. All the tools are purchased from outside, even though they are having sufficient facilities for producing the same. From the study it is concluded that, sophisticated inventory control techniques are not followed by the company. The company is giving part of its raw materials to subcontractors for conversion. If they could implement and follow the inventory management techniques, they can enhance the profit with minimum cost.

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,

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...

Implementation of Inventory Management System in a Furniture Company: A Real Case study

2012

Inventory management system for any company is essential to fulfil customer demands on time and in cost effective manner. Selection and implementation of inventory management system for any company management is vital. In this paper, we will discuss the most commonly used inventory management tools and using a real furniture company data as a case study, we will implement the inventory management system. In last, we will compare the implemented inventory management system with the existing system and infer the results.