Inventory Reduction in a Metal-Mechanical Industry Using Logistical Tools (original) (raw)

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.

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...

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 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.

CURRENT ORDER AND INVENTORY MODELS IN MANUFACTURING ENVIRONMENTS: A REVIEW FROM 2008 TO 2018

One of the issues of designing a supply chain network is "Supply chain ordering management ". Extra costs are the most important factors in the survival of an organization and have a significant impact on the company's competitiveness. However, holding inventory, order accepting, and functional risks are factors that have not been studied simultaneously. The purpose of this paper is to provide a review on order and inventory and use of Activity based costing approach in regard to supply chain management and cost managment. This paper selected and reviewed 56 published articles in a decade of 32 important journals related to order and inventory of supply chain manufacturing industries which were chosen from the " Science direct and Scopus " databases and in this regard, the Artificial Neural Network method which called " ANN " , ant colony algorithm and queue theory have been proposed. Finally, International Journal of production Economics was ranked as the first. The results of this paper acknowledge that order management and inventory control can help decision makers in solving some problems under uncertainties and situations of demands in the environmental manufacturing industries and this approach has seen increasing interest among previous researchers to use this approach in various steps of supply chain management.

IJERT-A Decision Model for Production Inventory Management in a Manufacturing Firm

International Journal of Engineering Research and Technology (IJERT), 2014

https://www.ijert.org/a-decision-model-for-production-inventory-management-in-a-manufacturing-firm https://www.ijert.org/research/a-decision-model-for-production-inventory-management-in-a-manufacturing-firm-IJERTV3IS050847.pdf This paper presents a working inventory model to incorporate the partial back ordering inventory with references to the back ordering inventory model. The reorder point models of maximum expected cost and service level approach were established. Data, covering the demand, setup cost, and the holding cost were obtained from the Champion Breweries Plc, other related data were estimated. These enabled the application of the models to obtain, the review period, (T) the fill rate (F), the stock-out (S) and finally the order quantity (Q). It was found and could be recommended that quantity (Q) of 285022 tons of plan sorghum be placed bi-ennialy with a lead time of four (4) weeks. At a time the stock level is expected to be at 58.746 ton.

The role of inventory in the supply chain

2008

Lanţul logistic este un sistem coordonat de organizaţii, oameni, activităţi, informaţii şi resurse implicate în mişcarea unui produs într-o manieră fizică sau virtuală de la furnizor la client. Activităţile din lanţul logistic transformă materiile prime şi componentele într-un produs care este livrat către consumator sau utilizator. Activitatea de stocare, alături de transport şi de localizarea spaţiilor de producţie sau a depozitelor, reprezintă un factor important care influenţează performanţa lanţului logistic. Stocul cuprinde materiile prime, munca în curs, şi toate produsele finite din cadrul unui lanţ logistic. Schimbarea politicilor de stocare poate duce la modificarea dramatică a eficienţei şi receptivităţii lanţului logistic. Managerii firmelor care fac parte dintr-un lanţ logistic trebuie să identifice principalele categorii de stocuri şi modul în care acestea pot fi dimensionate. La nivelul fiecărei firme se pot identifica stocuri curente, stocuri sezoniere şi stocuri de siguranţă şi se pot calcula o serie de indicatori care pot oferi o imagine a activităţii de stocare. În mod tradiţional, managementul stocurilor reprezintă o provocare deoarece are un impact direct atât asupra costurilor, cât şi asupra nivelului de serviciu. Variaţiile neprevăzute ale cererii şi ofertei conduc la necesitatea menţinerii stocurilor în diferite verigi ale lanţului logistic pentru a răspunde nevoilor clienţilor. În consecinţă, creşterea stocurilor în lanţul logistic va duce la creşterea nivelului de serviciu şi la sporirea veniturilor, dar şi la mărirea costurilor. Cuvinte cheie: •lanţ logistic, •stoc curent, •stoc de siguranţă, • stoc sezonier, •metode de stocare Clasificare JEL: D20, D30, M10

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.

Inventory Control Logistics and Technicalities

Inventory can be regarded as a stock of goods. Here, we consider inventory as an idle but usable resource. It includes; labor, raw materials, finished goods and equipment stock is reserved to provide a flow of supply. In addition to design, planning, and inventory control, the applications of queueing theory can also be found in performance evaluation and improvement, logistics and transportation, and other areas of supply chain. The scope of logistics has been considerably extended, as it has been recognized as one of the important tools for developing competitiveness. In this work, efforts are being intensified on harmonizing the logistic technicalities with inventory control.

Inventory methods in order to minimize raw materials at the inventory level in the supply chain

2017

Background: Each international producing organization seeks to implement its processes more effectively to minimize its costs and to maximize its profit. The primary purpose is to keep their inventory value at the lowest possible rate to minimize costs. To this end, the investigated organization operates several processes. One of them is the so-called Vendor Managed Inventory [VMI], in which the supplier manages the inventory at the customer and the second is the consignment inventory processing, in which suppliers store goods at the customer location. The principal goal of this paper is to examine whether the application of these methods may result in cost-effective savings for the examined organization and if yes, to what extent. Methods: This research was carried out in the framework of a case study at a producing organization in Hungary. The selected case is the producing organization located in the North-Great Plain Region in Hungary. Analyses were performed using the relevant ...