Abstract

The paper proposes an Inventory Application Model with a periodic review under the policy (R, S), where the demand is not constant and varies widely. A proposed model with the historical critical materials used in the manufacture of low voltage windings of distribution transformers was proposed and implemented for the company studied by decreasing the inventory shortage. We found that the inventory holding costs for minimum levels of service was approximately 90% for each of the critical items. During the year the model was applied, penalty fine payments were reduced from $831,850 to $133,350 mx.

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