Developing an Inventory Management System for an Automobile-Spare Parts Local Distributor
- Publication Type
- Original research
- Authors
This paper aims at developing an effective
spare parts inventory management system at a local
Palestinian distributor having an agency for a certain
brand of auto spare parts. A set of spare parts is
considered in the analysis by firstly classifying them into
ABC classification based on real historical sales date.
Proper forecasting models are derived for each category
to estimate the future demand of each item. Then,
estimates of relevant costs are identified for each category
of spare parts items. Respective optimal ordering policies
(with optimal order quantities and optimal ordering
times) based on Economic Order Quantity (EOQ) models
are determined such that the total annual spare parts
inventory cost is minimized. A comparison with the
current ordering policies adopted by the distributor with
the ones obtained in by EOQ models is conducted where
the EOQ-based policies outperform the current
Journal
- Title
- International Journal of Engineering Research And Management (IJERM), Volume-02, Issue-09, pp.11-20
- Publisher
- --
- Publisher Country
- Palestine
- Publication Type
- Both (Printed and Online)
- Volume
- --
- Year
- 2015
- Pages
- --