INVENTORY MANAGEMENT WITH STOCHASTIC DEMAND: CASE STUDY OF A MEDICAL EQUIPMENT COMPANY
Keywords:Inventory management, ABC/XYZ model, Demand forecast, Periodic review
This research proposes an inventory management system based on a periodic review model for a medical equipment company. The work aims to reduce inventory volume and out-of-stock and to improve service levels. The proposed methodology is a combined ABC/XYZ classification using the patterns and magnitude of demand under the constraints of spare parts cost. For the ABC/XYZ classification, we propose a model to forecast demand; and we evaluate eight forecasting methods to adjust the classification characteristics. The results obtained allow the reduction of arrears, an increased service level, and a decrease in average inventory.
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