Supply of raw materials in an automotive manufacturing company

Erika Montes De Oca Sánchez, Lourdes Loza-Hernández and Angélica Loza-Hernández

International Journal of Management and Decision Making, 2021, vol. 20, issue 4, 323-348

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.

Keywords: raw material supply; inventory management; Wagner-Whitin algorithm; decision maker; supply chain; forecast methods. (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=118541 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmdma:v:20:y:2021:i:4:p:323-348

Access Statistics for this article

More articles in International Journal of Management and Decision Making from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().