Diagnostic and proposal for use of safety inventory into finished products for a plastics company

Abstract

The stock is essential for companies. Thinking about it, it is increasingly necessary to develop techniques that seek to reduce inventory levels making them suitable to the company structure and satisfactorily meet the needs of increasingly demanding customers while maintaining the service level. The safety stock is derived from various uncertainties such as shortage of raw materials and difficulties in producing variations in sales projections thus scaling of this safety stock is a most difficult task to perform. In this sense, the present study aims to demonstrate the Inventory Management structure acceptable to a company that seeks to reduce capital invested in stocks as well as a for continuous review reorder point. The research was developed through an analysis of the current policy Inventories of the company, where we sought the most representative products of the product line. For these products it was necessary future sales forecasts for the annual period where it was possible to scale according to company politic Inventories of the average stocks of these products in order to compare with the stocks of securities calculated using specific equations. Then, using the equations it was also defined the point of application of all the studied products was defined, as a model for continuous revision product line studied. Finally the proposed method for use of safety stock techniques showed good results as a reduction of approximately 43% of capital invested in safety stock if compared to current Inventories policy of the company.