Inventory control and product flow optimization

Abstract

This work was developed within a company dedicated to the sale of orthopedic devices. A study for inventory control was carried out considering the need to establish an optimal operations doctrine, as an important process in its operation; since maintaining high levels of inventories is equivalent to having high opportunity costs for the company. A significant need within its internal logistics is the lack of an inventory control policy, this generates high rates of soft orthopedic products and in other product lines there are shortages of stock, causing loss of customers and sales, in addition to administrative problems. The objective of this study is to establish a doctrine of optimal operations, which allows the company to maintain an efficient mix of products, according to replenishment times that allow minimizing the cost. For this purpose of making decisions, a mathematical model has been designed that leads to economic batch equations and reorder levels, resulting in a practical and functional procedure for stock management.