Supply of raw materials in an automotive manufacturing company
by Erika Montes De Oca Sánchez; Lourdes Loza-Hernández; Angélica Loza-Hernández
International Journal of Management and Decision Making (IJMDM), Vol. 20, No. 4, 2021

Abstract: This work has the purpose to assess the inventory policy of a manufacturing company of automotive components and to propose a new policy which would help to reduce the holding and ordering costs associated with the purchase of its raw materials. A new inventory policy for raw materials to the company is proposed regarding purchase conditions of size lot materials and suppliers. The information obtained from the staff people of the company is used to apply the Wagner-Whitin algorithm and forecast method to determine the demand. A relevant reduction of the cost per year was found by applying the new inventory policy for raw materials in comparison with the current inventory policy of the company. This work will provide to the decision maker in the production area a new tool to determine the order purchases per year using a quantitative method.

Online publication date: Thu, 28-Oct-2021

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