Reduction of overstock items through implementation of fixed time- fixed order quantity reordering policy and application of 3-month weighted moving average at the central store warehouse of JG Summit Petrochemical Corporation

Date

4-2012

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Haerold Dean Z. Layaoen

Abstract

The Central Stores Warehouse of JG Summit Petrochemical Corporation (JGSPC) has significantly high level of spare parts inventories. The warehouse has been over0ordering items that result to increase in overstock. This study focused on analyzing the Dynamic type of Mechanical items which constitutes to 76.8%of the worth of ending inventories from October 2010 to April 2011. The materials were classified into ten product families and each family was represented by one item. The ten representative items were analyzed. The problem was addressed through implementing Fixed-Time Fixed-Order Quantity Reordering Policy and application of 3-month Weighed Moving Average. The solutions generated savings amounting to Php Php 36,295,793.96 for seven months and overstock was reduced by 55%.

Language

English

Location

UPLB College of Engineering and Agro-Industrial Technology (CEAT)

Call Number

LG 993 2012 E66 I43

Document Type

Thesis

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