Improving the level of service through an inventory management model for a spare parts marketing company
Authors: Jhordan Salazar, Erick Salinas, Alberto Flores, Jose C Alvarez, Narat Hasachoo
Abstract: This research study deals with the administration of spare parts, for machinery used by the mining and construction sector, in a trading company where there is a shortage of the stock of its high turnover items as a result of poor inventory management. The indicator of the average service level of the two most critical spare parts families marketed by the company is 73%, which is mainly caused by not applying the right forecasting method for demand and not based on a purchasing procurement model. To address this problem, the article shows an innovative proposal where the integration of a procurement module (Q,r), ABC Multicriteria analysis and demand forecasting methods for inventory management are considered. The main contribution of the model is to give the importance of inventory management and how it influences the profits of the company.
Keywords: ABC Multicritary analysis, model (Q, r), Stock outages, inventory management
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