Inventory Control Techniques Research Articles

Study of New Material Management System in Construction Sector

Construction is a major component, which forms 45% to 50% of the country’s development activity. Construction materials and components contribute about 50% to 60% of the total value of construction. There will be some difficulty in defining construction materials. Some are exclusively used in construction and others in other industries also. Some form heavy percentage and some very minor percentage, but critical in their nature and affect the construction activity. The management and control of inventory is a problem common to all organizations in any sector of the economy. The wealth of shareholders also lies in the warehouse. More than 60% of working capital is normally being invested in the inventory. There can be disadvantages in holding either too much or too little inventory. Therefore inventory management is primarily concerned with obtaining correct balance between two extremes. Inventory management involves the development and administration of policies, system and procedures which will minimizes total cost relative to inventory decisions and related functions such as customer service requirement, production scheduling, purchasing etc.., Viewed in that perspective, inventory management has a broad scope and affects a great or number of activities in an Organization. For the past few years the concept of inventory system has gained more importance in our country. It is due to intense competition in the market, which has forced organizations to search for proper inventory control technique to reduce investment in inventories and thereby reducing overall cost. In this study the study of current inventory system is carried out and by combining the different inventory system the one new inventory system developed .By comparing the cost benefit analysis between current inventory control system and new inventory system by taking suitable actual case study will be carried out

Buffer Stock Inventory Control Mechanism: An Approach of Minimizing the Buffer Stock Level Through Segmentation at a Tertiary Care Rural Hospital.

Background Efficient management of hospital inventories, particularly pharmaceuticals, is essential for ensuring timely patient care and optimizing resource allocation.Buffer stock is the backup stock, which is kept for providing a supply of drugs when the main stock is consumedand new stock is in the process of procurement.The buffer stock is sometimes kept in excess, which causes unnecessary overutilization of the financial resources. Therefore, the author's team aimed to optimize the inventory control of the buffer stock.This study addressed these challenges by integrating always better control (ABC) and vital, essential, and desirable (VED) analysis to categorize drugs based on consumption patterns and clinical importance to minimize buffer stock and ensure optimum resource allocation. To overcome these challenges, there is a need to integrate financial and clinical factors into inventory management decisions. Methods This study was done at the pharmacy of an apex hospital situated in a rural region of western India. The study aimed at the categorization of drugs that require strict inventory management control. The drugs and consumables used in the month of April 2024 in the hospital pharmacy were considered for the study& inventory control methods were applied. Results The study discovered that a subgroup of drugs accounted for a significant portion of the pharmacy's budget, with 12.18% categorized as high-value (Category A), 22.07% as moderate-value (Category B), and 65.74% as low-value (Category C) items. ABC analysis showed that Category A drugs consumed 70.1% of the average daily expenditure (ADE) of the pharmacy, while Category B and Category C drugs contributed 19.9% and 9.98% of the ADE, respectively. VED analysis classified drugs into vital (11.34%), essential (58.26%), and desirable (30.39%) categories. The ABC-VED matrix further categorized drugs into subgroups, with class I items constituting 20.62% of the inventory and accounting for 73.82% of the ADE. Class II items comprised 56.69% of the inventory, consuming 22.91% of the ADE, while class III items constituted 22.68% of the inventory and consumed 3.28% of the ADE. Conclusion ABC and VED analysis integration provides a comprehensive framework for optimizing drug inventory management in healthcare facilities. By considering both financial and clinical factors, this approach enables tailored management strategies, minimizing buffer stock, eliminating stockouts, and enhancing patient care. The rural hospital's location is responsible for maintaining the buffer stock level and the reorder level quantity. This study highlighted the role of inventory control techniques in healthcare facilities, particularly in pharmacies, to ensure the availability of essential medications while optimizing resource utilization. By integrating segmentation techniques such as ABC and VED analysis, this study provided valuable insights into categorizing drugs based on their consumption patterns, criticality, andimportance in the clinical area.

Enhancing Placements in Educational Institutes: A Novel Approach

Abstract—The ABC analysis is an established inventory control technique in the industry wherein the available inventory is divided into three categories. It is similar to the Pareto principle and provides a mechanism to segregate the material into different categories based on their values to the industries. This study presents a novel approach of extending the concept of ABC analysis to the companies visiting the institutes for conducting the campus interview. The primary objective of this study was to enhance the quality and number of placements in the institute by classifying the industries as per the ABC analysis. The data of 268 companies visiting the institute over a period of eight years was documented and analyzed. After careful deliberations, a formula was established to determine the value of each company offering placements. The percentage value obtained for every company was used to segregate the companies into A, B and C categories. For calculations, the study has considered only the number of placements and average package offered by the visiting companies. Thereafter certain initiatives were undertaken by the institute for engaging with the industries. The motive was to enhance the quality of placements and to increase the industry-institute interactions in the institute. It was observed that the implementation of various initiatives led to an increase in the number of placements, average and maximum package. Within a year, the placements increased by 121 while the maximum package increased to 4.6 Lakhs. Pro-active engagement with the ‘A’ category companies have also resulted in additional benefits such as scholarships for needy students, increase in internships for students and increase in footfall of the industry experts and establishment of Centre of Excellence. The present study is a unique attempt to enhance the quality and number of placements in educational institutions. It represents a logical extension of a simple and commonly used technique in a different domain. This approach can be applied to any educational institute with suitable modifications for increasing the industry-institute interactions. Keywords: ABC Analysis, Educational Institutes, Engineering Graduates, Internships, Pareto Principle, Placements.

The Impact of Strategic Inventory Management on Logistics Organization’s Performance

This study examines the impact of strategic inventory management on the performance of logistics organizations in Oman. Inventory management plays a crucial role in ensuring efficient operations, reducing costs, and meeting customer demands. The study investigates the strategic inventory management practices adopted by logistics organizations in Oman, including demand forecasting, procurement optimization, and inventory control techniques. It analyses the influence of these practices on key performance indicators such as order fulfillment, on-time delivery, inventory turnover, and customer satisfaction specifically within the context of the Omani logistics industry. The study highlights the significance of a well-designed inventory management strategy in enhancing overall organizational performance by improving resource allocation, minimizing stockouts, and enhancing supply chain responsiveness. The study concludes with practical implications for logistics managers in Oman and suggests avenues for future research in this area specific to the Omani context.

Analysis of inventory management in pharmaceutical sector: a review paper

The study utilizes the inventory review technique to develop the status of pharmaceutical industry by using various inventory control techniques. Pharmaceutical sector plays a crucial role in the medical industry. The pharmaceutical industry is always looking for novel treatments that can help people live longer and live healthier lives. The study uses a systematic literature review using various statistical methods like ABC-VED, JIT, EOQ, Fuzzy logic, FNS etc. The classification of various pharmaceutical inventory model is incorporated on the basis of these methods. In this study, all of the primary approaches to drug handling inventory management are examined, and the most effective approaches are identified as those that, when combined and utilized in an automated setting, can aid in maintaining inventory levels at their optimal levels.

A Study of Inventory Control Technique on Construction Industry

Inventory control techniques are crucial in the construction industry to minimize wastage, maximize efficiency, and reduce costs. This literature review analyzes various inventory control techniques used in the construction industry, including Just-In-Time (JIT) inventory, Economic Order Quantity (EOQ), and Vendor-Managed Inventory (VMI). The review examines the advantages and disadvantages of each technique and highlights the challenges associated with their implementation in the construction industry. Additionally, the review explores the potential benefits of implementing innovative technologies such as radio frequency identification (RFID) and building information modeling (BIM) in inventory control in the construction industry. The findings suggest that the adoption of these techniques and technologies can enhance inventory control practices and improve the overall efficiency of construction projects.

A STUDY OF INVENTORY CONTROL TECHNIQUES TO OPTIMISE REVENUE IN SMALL RETAIL STORES

According to an estimation, there were around 12.65 million retail grocery stores in India in 2020. These Stores typically covered 100-200 square feet and kept stock of around 500-1000 items. These small retail shops generate yearly average revenue of 18-25 lac, of this the profit margins are around 3-4% i.e., Rs 54,000-72,000 yearly. From discussions with shop owners running small to medium retail stores from two-three generations, the challenge seems to be either overstocking leading to wastage, or stock-out leading to customer diversion. Small retail stores usually are managed using the primitive hit and trial method when it comes to inventory management, that only becomes moderately efficient in case of extensive experience of the manager. The following paper presents a study of three inventory control techniques in order to optimize revenue by controlling the inventory efficiently for small retail stores in India. The purpose of this study is to figure out a pattern connecting inventory control with optimal revenue which may further be converted into an algorithm for software that may help small retail store owners all over India.

Application of ABC-VED analysis for inventory control in drug store of a tertiary care hospital of North Maharashtra

Abstract Introduction: The hospital's pharmacy is one of the most heavily used therapeutic services and one of the few places where a significant amount of money is spent on recurrent purchases. This underlines the need of strategically planning, creating, and arranging the pharmacy to ensure effective clinical and administrative services. Materials and Methods:Inventory control techniques like ABC, VED and ABC-VED matrix analysis were used to evaluate the annual drug expenditure at drug store of Government Medical College & Hospital Jalgaon for the financial year 2019-20. Results:Total number of drugs in inventory in Government Medical College & Hospital Jalgaon in the year 2019-20 were 334 and the annual drug expenditure was 54040462/-. Category A comprised of 49 drugs (14.7%) for which annual drug expenditure was 37286500/- i.e. 69%. 87 drugs (26%) accounting to 11324859/- (20.96%) were classified as category B drugs. Category C drugs included 198 drugs comprising 59.3% of total inventory and consumed 5429103/- i.e. 10.05% of total annual drug expenditure. 39 drugs (11.7%) were classified into vital/V category which accounted for 15257089/- i.e. 28.23% of annual drug expenditure, while essential/E category included 127 (38%) drugs for which 30161684/- (55.81%) was incurred for their procurement. 168 (50.3%) drugs accounting to 8621689/- (15.95% of total annual drug expenditure). Conclusion:The application of inventory control strategies such as ABC, VED, and the ABC-VED Matrix will help in significant improvements in patient care.

Workplace Violence on Physicians and Nurses: Causes and Pre-Violence Suggested Solutions

One of the important occupational health problems is violence. Violence is more prevalent among physicians and nurses in psychiatric and emergency departments in Jordan public hospitals. Causes of this phenomenon are associated with different causatives such as hospitals facilities (including beds, medication, oxygen… etc.), hospital staff, ministry of health and patients with their families. In this work violence on physicians and nurses in Jordan hospitals is analyzed based on the causes of violence. Solutions are searched upon the causatives of these actions not only on education, training and toughening punishment. Results of this work showed that 58.3 % of violence is due to hospital facilities and staff, 25% government actions and 17.7 % due to patients and their families. This work suggests investing more in healthcare institutions, provide more skilled staff, introduce a management procedure following incidents, preventive policies and improving health institutional facilities by applying programs for medicine inventory control, human factors and management techniques.

How is Information from ABC-VED-FNS Matrix Analysis Used to Improve Operational Efficiency of Pharmaceuticals Inventory Management? A Cross-Sectional Case Analysis.

PurposeThe categorization of inventories using various techniques optimizes the efficiency of warehouse operations. The ABC (always, better, and control); VED (vital, essential, and desirable); and FNS (fast-, normal-, and slow-moving) analyses provide items according to cost significance, criticality value, and consumption rate respectively. Thus, this study aimed to identify the categories of items requiring focused managerial control, priority, and replenishment intervals, as well as to evaluate whether the ABC–VED–FNS matrix is fit for effective and efficient inventory control of the Ethiopian Pharmaceutical Supply Agency (EPSA).MethodsAn institution-based cross-sectional descriptive study was conducted on 393 pharmaceuticals distributed by the EPSA-Jimma hub. The annual sales list with respective total quantity and unit price was collated from the logistics data records to perform the ABC analysis. The VED data were generated from the agency’s pharmaceutical procurement list. To perform FNS analysis, we take into account the number of issue transactions as well as the average monthly consumption pattern for each item. Microsoft office Excel 2013 statistical functions were used to analyse the collated data.ResultsThe ABC-VED analysis revealed that 187 (47.58%) of category I items account for 90% annual sales value; of which the highest proportion (63%) was AV items (36, 9%). Remarkably, there was no desirable (D) commodity that belongs to Class A. From the ABC–VED–FNS matrix analysis, category I consisted of 12 combinations with 187 (47.6%) items. Moreover, 28 (7.13%) items (CDN = 4 and CDS = 24) constituted category-III.Conclusion and RecommendationThe ABC–VED–FNS matrix analysis can help organization implement inventory control policies and techniques, narrow down a group of items that require more managerial monitoring and control, prioritize a storage location (pick-face) plan, minimize the time and labor cost of put-away, picking, and packing, and dictate when products should be reordered or replenished.

Inventory control techniques in a two-echelon supply chain model with fuzzy demand and learning effect

Inventory control techniques in a two-echelon supply chain model with fuzzy demand and learning effect

Inventory control techniques in a two-echelon supply chain model with fuzzy demand and learning effect

Inventory control techniques in a two-echelon supply chain model with fuzzy demand and learning effect

ABC Classification for Inventory Optimization (Case StudyFamily Supermarket)

This article deals with comparison between traditional ABC classification (using annual usage only) and an optimal new multi criteria ABC classification (using annual usage, unit price and lead time). ABC inventory classification is a well-known approach to assign items into three basic categories as A, B, and C based on their usage volume and sales. Efficient and effective inventory management helps a firm maintain competitive advantage, especially in a time of accelerating globalization. Most of the super market managers in our country do not use any inventory control techniques to monitoring the huge amount of items in their stock. The aim of this paper is to introduce an optimal multiple-criteria ABC analysis that improves the inventory management control system. On this approach the researchers use additional criteria, such as unit price and lead time.

Analisis Peramalan Permintaan dan Pengendalian Persediaan Bahan Baku Pembantu pada Industri Gula (Studi Kasus PT. XYZ Lampung Utara)

Peramalan dan manajemen persedian merupakan salah satu factor penting dalam menentukan keberlanjutan usuatu usaha dalam industri. Tujuan penelitian yaitu menganalisis metode peramalan penjualan yang paling sesuai untuk industri gula PT. XYZ dan menganalisis teknik pengendalian persediaan dengan menggunakan metode Economic Order Quantitiy (EOQ). Terdapat 5 metode peramalan yang digunakan yaitu : Linear Regression, Moving Average, Weighted Moving Average, Exponential Smoothing, dan exponential smoothing with trend. Hasil analisis menunjukkan bahwa metode linear regression merupakan metode forecasting yang paling sesuai digunakan oleh industri gula PT. XYZ dengan nilai MAD, MSE, dan MAPE terkecil dibandingkan metode lainnya yaitu sebesar 7.195, 65.854.060, dan 10%, dengan hasil peramalan pada tahun 2019 sebesar 44.746 ton gula pasir. Hasil analisis pengendalian persediaan menggunakan metode EOQ terhadap bahan baku pembantu belerang dan soda kaustik . Frekuensi pemesanan untuk belerang dilakukan 28 kali per tahun memilikitotal biaya persediaan sebesar Rp. 1.010.908.000 dan biaya penghematan sebesar Rp. 19.581.365. dan pembantu causatic soda dengan frekuensi pemesanan 27 kali per tahun memiliki total biaya persediaan sebesar Rp. 922.241.500 dan biaya penghematan sebesar Rp. 17.840.930.Â

Effects of Inventory Management on The Performance of State Corporations in Kenya

Purpose: The purpose of the study was to determine the effects of inventory management on the performance of state corporations in Kenya with an aim of making recommendations.Methodology: The study employed a descriptive research design. The researcher preferred this method because it allows an in-depth study of the subject. Data was collected using self-administered questionnaires. The study employed stratified random sampling technique in coming up with a sample size. Pilot study was carried out to establish the validity and reliability of the research instruments. The instruments were designed appropriately according to the study objectives. The data collected was analyzed by use of descriptive and inferential statistics. The study used multiple regression and correlation analysis to show the relationship between the dependent variable and the independent variables. The data generated was keyed in and analyzed by use of Statistical Package of Social Sciences (SPSS) version 24 to generate information which was presented using charts, frequencies and percentagesResults and conclusion: The regression equation above has established that taking all factors into account (inventory categorization, inventory control techniques, information technology integration and demand and supply forecasting) constant at zero, performance of state corporations in Kenya will be an index of 0.817.The findings presented also shows that taking all other independent variables at zero, a unit increase in inventory categorization will lead to a 0.537 increase in performance of state corporations in Kenya. The P-value was 0.000 which is less 0.05 and thus the relationship was significant. The study also found that a unit increase in inventory control techniques will lead to a 0.097 increase in performance of state corporations in Kenya. The P-value was 0.002 and thus the relationship was significant. In addition, the study found that a unit increase in information technology integration will lead to a 0.067 increase in the performance of state corporations in Kenya. The P-value was 0.000 and thus the relationship was significant. Lastly, the study found that a unit increase in demand and supply forecasting will lead to a 0.08 increase in the performance of state corporations in Kenya. The P-value was 0.001 and hence the relationship was significant since the p-value was lower than 0.05. The findings of the study show that, inventory categorization contributed most to the performance of state corporations in Kenya. The findings of the study indicated that; safety stock management, inventory control techniques, information technology integration and demand and supply forecasting have a positive relationship with performance of state corporations.Unique contribution to theory, policy and practice: Finally, the study recommended that public institutions should embrace inventory optimization practices so as to improve their performance and further researches should to be carried out in other public entities to find out if the same results can be obtained.

Application of a hybrid selective inventory control technique in a hospital: a precursor for inventory reduction through lean thinking

PurposeThe cost of providing healthcare is spiralling up in recent times. On the one hand, patients expect the highest quality of service, while on the other hand, the managers of the healthcare services want to minimise the total operating expenses. Hence, healthcare organisations implement lean thinking (LT) to achieve these twin objectives. LT reduces the eight wastes that are prevalent in the healthcare processes and functions. In particular, if the wasteful inventories related to expensive medical supplies are reduced, the resulting cost savings can help in providing affordable and accessible healthcare.Design/methodology/approachHence, in this paper, a case study of a hospital is presented where LT is implemented. One of the projects was related to inventory reduction in the store of the catheterisation laboratory (cath lab). A hybrid methodology called multi-unit selective inventory control (MUSIC) that combined these three dimensions (3D), namely, consumption value, criticality and lead time or ease of availability was used to classify the medical supplies into different categories.FindingsBased on the results obtained, various inventory systems and the associated tools and techniques of LT were proposed. For example, a deep dive into the A-class items revealed that some of the medical supplies fell under both vital and scarce categories. Hence, it was recommended that the case hospital should follow the economic order quantity (EOQ) with safety stock approach as these items were to be shipped from other states in India. Subsequently, the focus should be on developing a local supplier and attempts should be made to establish a kanban system with adequate information sharing.Practical implicationsThis study demonstrates the step-by-step methodology of MUSIC-3D which would guide the procurement managers to apply the same in their organisation. It also helps them in identifying appropriate elements of LT for inventory reduction before the actual deployment.Originality/valueNone of the papers has utilised the MUSIC-3D methodology as a precursor for inventory reduction, specifically within the domain of LT. Similarly, identifying and proposing different type of inventory systems and various LT practices based on this unique method is a novel attempt.

Study of Inventory Management in Pharmaceuticals: A Review of COVID-19 Situation

The study uses the inventory audit procedure to improve the inventory status of pharmaceuticals by selective inventory control techniques. Pharmaceuticals are vital sectors of medical industry, but because of the current situation, of COVID-19 Pandemic, there is a lot of reduction in capsule production, many of the pharmaceutical industries have rejected orders due to shortage of medicinal products during lockdown. This study uses systematic evaluation, statistical methods, Fuzzy logic, ABC-VED, EOQ, JIT etc. based on these methods the classification of various models for pharmaceutical inventory are incorporated. This also summarizes some of the case studies conducted based on the annual expenditure with ABC classification in the pharmaceuticals. The basic aim is to identify and improve the problems of inventory management by proposing a timely correct analysis. In this study, all methods that are primarily used in the inventory management of drug handling are reviewed and the best methods have been suggested that, when combined and applied in an automated environment, they can help to keep the inventory at an optimum level.

Simulation Model for Assessment of Non Deterministic Inventory Control Techniques

Inventory procurement is one of the most important aspects of the supply chain. This aspect is supported by specific numerical techniques to determine the optimal lot sizes to ensure prompt supply without increasing operational costs for retailers and providers. However, the practical performance of these techniques is only evaluated after implementation, which can lead to unnecessary risks and costs. In such case, simulation can provide the means to evaluate the dynamic performance of these techniques to reduce this risk. The present work describes the development of an open computational simulation code for two non-deterministic inventory control techniques. The functionality of this code provides insights regarding the disadvantages of considering just the static numerical parameters of the model and the advantages of the dynamic aspect of simulation. This contribution can be used by the academic researcher or professional within the logistic field to evaluate and improve their strategies for inventory procurement.

Inventory Management Issues in Indian Steel Industry: A Qualitative Study

Inventory management in Indian steel industry is felt as one of the unexplored area in terms of research practices. This study attempts to understand the major aspects of inventory management of Indian steel industry like major inventory management issues prevalent in steel firms, and impact of these issues, drivers, barriers, and possible measures that may help to resolve these issues. This study is based on an exploratory qualitative study of major Indian steel firms. The narratives reveal six major themes: Inventory management practices; Inventory issues in the steel industry; Major drivers for effective inventory management in Indian steel industry; Major barriers for the implementation of effective inventory management techniques including the implementation of ERP/MRP to manage inventories; Impact of inventory issues; Inventory control techniques to resolve these issues.

Comparing Application of R-Model over Conventional ABC Analysis in a Pump Manufacturing Organization

Inventory control technique is widely employed in every manufacturing organization and ABC analysis is traditionally used for selective inventory control in a supply chain, or in the production system. The main purpose of ABC analysis is to classify stock keeping units to control the high value, medium value and low value items. ABC analysis concentrates quantities of inventory items and inventory values only. Different criteria such as lead time and criticality of inventory items may be initiated to manage the inventory items in a better way. Since consideration of those criteria is impossible for ABC inventory control technique, different multi criteria based inventory control techniques are applied to manage stock items. In this article, selective ABC inventory control technique has been applied to manage inventory items of a pump manufacturing organization situated in the Eastern region of India. Procurement lead time for a stock item plays an important role in supply chain as well as production also. So, lead time criterion in different inventory control strategies ensures an appropriate inventory management system. An AHP based Multi Criteria Inventory Control (MCIC) technique has been adapted regarding different criteria, such as quantities of inventory items, inventory values and lead time criteria to manage inventory items of the pump manufacturing organization. This MCIC model is a weighted linear optimization technique, termed as ‘R-model’. To evaluate the performance of conventional ABC analysis and R-model, a comparison is drawn based on the safety stock inventory cost and fill rate of the inventory items. The entire investigation is capable to find out the cost effective inventory control technique.