Improvement of inventory turnover ratio through implementation of proper forecasting method and inventory model in BTSCFP, Nueva Ecija, Philippines

Date

6-2015

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Mikel Angelo B. Yap

Abstract

The study was conducted at the Bagong Talavera Senior Citizens Funeral Parlor (BTSCFP) in Talavera, Nueva Ecija Philippines. The company is having an inventory turnover rate between 0.15 and 0.25 for 3 months. This is caused by BTSCFP maintaining high levels of inventory of caskets with low demand. The low turnover rate of caskets are caused by the experimental factors: 1.) lack of method in reducing the current inventory, 2.) lack of method in determining future demand, and 3.) lack of proper methods in computing the order quantity and order point. A method in removing the non-moving inventories is proposed. Four forecasting methods were evaluated using Mean Absolute Deviation. Three different inventory models were proposed and evaluated via simulkation and comparison of the resulting turnover ratio from each alternative. It was determined that implementing the Four-month Simple Moving Average, along with Fixed Period-Fixed Order Quantity Model with a period of 4 weeks is best suited for the business. The resulting process changes com at no additional cost and should result to (a) increase in turnover ratio to 2.05, and (b) decrease in inventory levels by 80.19%.

Language

English

Location

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

Call Number

LG 993 2015 E66 /F73

Document Type

Thesis

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