Inventory Management is a widely misinterpreted technique that is not receiving the due attention it deserves. It can be crucial to an industry’s production operations especially to small-scale manufacturing plants where even a minimum savings value results in an increased profit margin. The purpose of this study was to evaluate the present-day procurement behaviours and contrast it with mathematically concluded options thereby formulating an entire Inventory model around it. The research was conducted by visiting two industries, namely Rainbow Industries and Karnataka Closures and collecting relevant data. It was found that both industries followed a JIT model of procuring raw material. Further analysis of said data suggested that by implementing an Economic Order Quantity (EOQ) model, both industries could procure an increased quantity of raw material while saving a substantial amount of capital in procurement charges. This would also increase production rates. The analysis techniques utilized where EOQ and ABC Classification of Finished Goods. Additionally, the scope of the study extends to any management or executive personnel looking to reinvent and optimize production capacities using effective tools.
|Number of pages||8|
|Journal||International Journal of Mechanical and Production Engineering Research and Development|
|Publication status||Published - 26-12-2018|
All Science Journal Classification (ASJC) codes
- Aerospace Engineering
- Mechanical Engineering
- Fluid Flow and Transfer Processes