INVENTORY MANAGEMENT WITH STOCHASTIC DEMAND: CASE STUDY OF A MEDICAL EQUIPMENT COMPANY

Authors

DOI:

https://doi.org/10.7166/34-1-2668

Keywords:

Inventory management, ABC/XYZ model, Demand forecast, Periodic review

Abstract

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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Published

2023-05-26

How to Cite

Ternero, R., Sepulveda-Rojas, J. P., Alfaro, M., Fuertes, G., & Vargas, M. (2023). INVENTORY MANAGEMENT WITH STOCHASTIC DEMAND: CASE STUDY OF A MEDICAL EQUIPMENT COMPANY. The South African Journal of Industrial Engineering, 34(1), 131–142. https://doi.org/10.7166/34-1-2668

Issue

Vol. 34 No. 1 (2023)

Section

Case Studies

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