The Presentation of a Mathematical Model to Assess and Control the Inventory Control System through ABC Analysis Approach (A Case Study of Lino Meat Products Company) (original) (raw)

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.

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.

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-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.

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.

Analysis of Inventory Control Techniques-Abc & Ved; a Comparative Study

2016

Every organization needs inventory for smooth running of its activities. It serves as a link between production and distribution processes. The investment in inventories constitutes the most significant part of current assets and working capital in most of the undertakings. Thus, it is very essential to have proper control and management of inventories. The purpose of inventory management is to ensure availability of materials in sufficient quantity as and when required and also to minimize investment in inventories. So, in order to understand the nature of inventory management of the organization, In this study we analysingABC and VED inventory control techniques for efficient inventory management system. Introduction:

Supply Chain Logistics Management Using ABC Analysis-An Inventory Control Method

2016

Inherent uncertainties in demands and supply make it difficult for supply chains to achieve optimum inventory replenishment, resulting in loss of sales or keeping excessive inventories. An unkempt inventory can take up to one-third of an organization's annual investment. Therefore, in order to compete with invariably erratic demands, it is not only challenging to develop an intelligent system to maintain and control an optimum level of inventory but has also become mandatory. Here we have tried to study the supply chain logistic management in manufacturing industry using XYZ analysis method. Supply chain: Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies Logistic: Logistics management is that part of the supply chain that plans, implements, and ...

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.

Selective Inventory Control Using ABC And FSN Analysis in Retail Sector: A Case Study

International Journal for Research in Applied Science & Engineering Technology (IJRASET), 2022

Inventory is the most important assets of any Enterprises whether it is micro, small or medium. The efficient use of selective inventory control model will result high flexibility and control over surplus and deadstock inventory. The aim of this study is to identify various factors that affect the enterprises performance in urban region. The study is conducted in A2Z Pharmacy store in an urban region. Data that has been collected is of primary type and has been collected from the database of the pharmacy store. ABC and FSN analysis methods are used on 190 types of medicine. ABC-FSN matrix is prepared using ABC and FSN combined analysis. On the basis of combined analysis and priority matrix there are three sub-categories in which some sub-category element has to be eliminated by anyhow and some sub-category element has to be maintained with minimum stocks (i.e. safety stock) and some sub-category elements has to be maximised or maintained.

Controlling inventory by combining ABC analysis and fuzzy classification

Computers & Industrial Engineering, 2008

The objective of inventory management is to make decisions regarding the appropriate level of inventory. In practice, all inventories cannot be controlled with equal attention. The most widespread used inventory system is the ABC classification system, but the limitation of the ABC control system is that only one criterion is considered. The purpose of this paper is to propose a new inventory control approach called ABC-fuzzy classification (ABC-FC), which can handle variables with either nominal or non-nominal attribute, incorporate manager's experience, judgment into inventory classification, and can be implemented easily. Our ABC-FC approach is implemented based on the data of the Keelung Port. The results of our study show that 59 items are identified as very important group, 69 items as important group, and the remaining 64 items as unimportant group. By comparing the results of ABC-FC with the original data, we find that our ABC-FC analysis shows a high accuracy of classification. Some concluding remarks and suggestions for inventory control are also provided.