Inventory Management- Enterprise Resource Planning (original) (raw)
Related papers
International Journal of Advance Engineering and Research Development, 2016
Spare parts stock control management is crucial areas of inventory research. In our research paper, we consider downstream plant of petroleum are Ethylene, Ethylene Glycol, Polypropylene, polyethylene & utilities located at same location of unit. E.g.: Reliance Industries in India & SABIC affiliates at Saudi Arabia. Cost economics policy for spare parts stock level control is based on companywide spare parts interchangeability of identical spare parts among equipment. It requires a dedicated review through sectional drawings for interchangeability maintenance history especially for rotary equipment. Study indicates current practice for spare parts stock levels are normally based on equipment in the individual plant. However, interchangeability of spare parts may exist equipment among plants. This work presents an approach of companywide technique for spare parts stock levels control. The Methodology is based on descriptive study of technical aspect of interchangeability of spare parts of equipment among plants. A. Basis of The Study Covers The Following 1) Cost reduction by rationalized stock levels for identical spare parts for installed quantity 2) Reducing duplication of item code for identical spare part using companywide technique B. Working framework is based on the following dependent variables and necessary considerations. 1) Manufacture standardization among plants during the project stage for items like Mechanical seal, Pressure safety valves etc. 2) Stock level formulation using E SPIR (Electronic Spare Parts Interchangeability Record) 3) Considering, lead time is uniform and identical spare parts do not require in more quantity at same time 4) Data analysis is based on conceptual study however supported with example based on secondary data collected from one of affiliate SABIC plant KSA.(for a item) 5) Based on the study of related literature through journals, Publications, books are based on the techniques on EOQ, Reorder point; Demand forecasting (in manufacturing sector) and plant level interchangeability.
2018
Spare parts stock control is crucial to inventory research. Current practice of spare parts stocking is based on individual plant’s equipment. Identical spare parts could be rationalized based on companywide having different plants. It requires a dedicated review through drawings and documents of manufacturer’s data for interchangeability. Primary objective is to contribute in inventory cost reduction on the basis of rationalization of stock levels for identical spare parts. Identical spares rarely require simultaneously for maintenance in relevant equipment among different plants. The methodology is based on three stages which include gathered opinion through questionnaire for companywide stocking policy from above industries in India and Gulf. Subsequently followed by conceptual methodology of companywide codification includes reviewing through an adequate Spare parts Interchangeability record (SPIR) formatted document. The final stage is validation which is supported with case st...
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 ...
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.
Spare Parts Inventory Management. A Literature Review and Directions for Future Research
In industrial contexts the proportion of the stock range that is devoted to spare parts is often considerable (e.g. Vereecke and Verstraeten, 1994) and small improvements in spare parts management may be translated to substantial cost savings (Eaves and Kingsman, 2004). Many research projects have considered issues related to the management of spare part inventories, but very few studies have emphasised the need to bring together the current state of knowledge in this area and critically review the relevant research advancements. The aim of this paper is to cover this gap providing a review of the literature currently available in this area and focusing on the main future research challenges.
Multi Echelon Spare Parts Inventory Optimisation: A Simulative Study
The research in this paper is motivated by a real life spare parts networks for complex technical systems in oil refining sector. At the customers the availability of the installed technical systems often is essential for the primary process. Hence, they require a high availability. For improve the management of the spare parts inventory the main company (the customer) has developed a new strategies for pushing down to the supply echelon some inventory so as to increase availability of finished parts or components while the properties is still kept by the supplier until its usage, so as sharing in such a way the inventory costs. In this paper after reviewing the literature on spare parts management the industrial case is discussed and based on it a model with closed queuing network approach will be shown. Due to its analytically difficultness the optimality of the parameters will be addressed via simulative way.
Challenges in managing spare parts for durable goods. An empirical study
Purpose The objective of the paper is to point out challenges and opportunities in spare parts management practice in durable goods industries addressing private or professional customers. Design/methodology/approach A multiple case study of ten manufacturing companies operating in the white goods, heating, air conditioning, automotive and printing machine industries was carried out. Findings The paper shows the main challenges in spare parts management by a set of representative durable goods companies, concerning the management methods, the internal and supply chain organization. In general, classification, demand and inventory management methods are rather simple and do not take into consideration the peculiarities of spare part demand. As well, information integration with the downstream supply chain is almost absent. Only companies operating in the automotive industry show a higher level of formalization of procedures and a greater attention to information management and supply...
IAEME Publication, 2014
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 with 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 effort of an effective inventory strategy is to optimise usage of materials while minimizing cost. 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. Selective treatment is done based on ABC and VED analysis which were then combined to give a two dimensional picture and stocking policies are suggested for each category. As an extension of the above analysis, the other parameters called 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 probable lead time and demand, optimum reorder quantity and optimum reorder level, minimum total cost which are also analyzed in this paper.
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...
The Problem of Excess and Obsolete Inventory Management on the Example of Spare Parts
2014
The aim of the paper is to characterize the excess and obsolete inventory of spare parts which is kept to maintain the continuity of production of industrial enterprises. Obsolete technical equipment, the necessity of maintaining safety stock or excessive amount of stored goods are often the main reason of the obsolescence of spare parts whose value in use decreases with the passage of time. The structure of spare parts inventory stored in a warehouse at different times has been presented on a practical example with the indication of the main reasons of non-moving stock. In the optimum management it is important to maintain appropriate warehouse management. Therefore, the content of the paper has been extended with the basic indicators of the analysis of excess and obsolete inventory.