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Supply of raw materials in an automotive manufacturing company

Author

Listed:
  • Erika Montes De Oca Sánchez
  • Lourdes Loza-Hernández
  • Angélica Loza-Hernández

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.

Suggested Citation

  • Erika Montes De Oca Sánchez & Lourdes Loza-Hernández & Angélica Loza-Hernández, 2021. "Supply of raw materials in an automotive manufacturing company," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 20(4), pages 323-348.
    • Handle: RePEc:ids:ijmdma:v:20:y:2021:i:4:p:323-348
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