DESIGN OF AN INVENTORY MANAGEMENT SYSTEM FOR THE PURCHASED MATERIALS IN A DEFENSE-INDUSTRY COMPANY
Journal Title: Endüstri Mühendisliği - Year 2017, Vol 28, Issue 3
Abstract
In this study, the inventory management system of the purchased materials in a defense industry company, and the problems therein are discussed. The system involved in the project includes the processes from the opening of the materials orders to the transfer of the materials to the production workshops. The materials supplied at the appropriate time and quantity are of vital importance for the contract manufacturing company and the potential delays in the supply are the major financial burden as well as the loss of prestige for the firm. The analysis of the current system has revealed four major problem symptoms: low "inventory turnover ratio", "waste ratio"that does not reflect the reality, "delays" based on scheduled delivery dates of materials due to the uncertainty in lead times, and "in-house waiting times" for purchase approvals. In this study, the redesign of material inventory management system aimed at alleviating problems such as frequent replacement of the Master Production Schedule caused by these symptoms, defects due to lack of materials in production, and delays in project delivery is addressed. The purpose of this study is to propose a decision support system for material inventory management that helps increase inventory turnover ratios, reduce total material holding and fixed ordering costs, reduce the likelihood of material shortage, and reduce the amount of spoiled material. For this purpose, new approaches areproposed and the results thus obtained are compared against the current system. Considering the types and shelf lives of materials, appropriate order sizes and schedules are determined by means of heuristic approaches and mathematical models. Then the proposed and existing systems are tested using both past data and prospective data generated through Monte Carlo Simulation.
Authors and Affiliations
Süleyman Mert AYDIN, Mert KARAASLAN, Yusuf Mahir NARTOK, Tolga KARABAŞ, Rüstem Ozan ÖZDEMİR, Ömer KIRCA, Sedef MERAL
Keywords
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- EP ID EP631182
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