Development of inventory control model based on linear programming technique for the cutting inserts used in the machining of gear wheels from S45C material

Abstract

The efficient and effective inventory management goes a long way in the successful running and survival of an industry. In the present paper, the authors studied the existing inventory control system of an industry manufacturing gear wheels. The various types of gear wheels are made from the S45C material round bar. These gear wheels are manufacturing by various cutting inserts. The ABC analysis was performed to identify the A class inserts. Subsequently, the linear programming technique was used to establish the relationship between the consumption of A-class inserts and the production quantity of gear wheels. This relationship was used to determine the requirement of inserts for the future production quantity. The EOQ, re-order level, safety stock and total insert's inventory cost were determined for future production. The linear programming based inventory model reduced the 24-27% inventory cost as compared to the existing inventory model.