APPLICATION OF PERIODIC REVIEW INVENTORIES MODEL IN A TYPICAL MEXICAN FOOD COMPANY

Abstract

The Mexican family companies must face the challenges of market volatility with greater recurrence, forcing them to use effective tools and models for the proper management of their organizations and inherent activities, such as inventory management. Therefore, this research was carried out at “Moles Santa Monica”, a typical food company located in the city of Puebla, Mexico. This enterprise has reflected a high variability in the administration of its inventories, with a Coefficient of Variation (CV) greater than 0.2 in most of their portfolio products. In this way, the objective of this study was to propose an inventory management model that might reduce the shortages and overstock, and also; improves its performance and profitability when it is managed. The applied methods were Pareto and ABC model to choose correctly the best seller company products. The inventory management model chosen was the periodic review (R, S) as well, for being the most effective and the one that best suited the circumstances of the company in question. Three of the portfolio products were studied (MPP10, MPC10 and COP10) due to they are the most representative in incomes and valuables for the company managers. The results allowed us to propose the review periodic model (R), the optimal quantity of units to produce (Q), the safety stock (Ss) and the maximum inventory (S) for each product. We conclude that this model will help the company to face the uncertainty of the demand. Finally, we include limitations and future studies.