Inventory Reduction in a Metal-Mechanical Industry Using Logistical Tools

This paper seeks the critical factors for a correct choice in the components set up along the supply chain. ABC classification was made for all the suppliers according to the supplied items for the company. After a demand analysis, the seasonal nature and trend during the timeline, we used the last four years registers where is shown a decreasing behavior in 30% of the items; Economic Order Quantity (EOQ), for deterministic (<20%) which 58 items represents 64% of the A classified items into the pull system; and a continuous review model q, R for stochastic (>20%) which 33 items represents 67%, 429 items (92%) are classified as B and 2,128 items (99%) are C. We reduced the lot quantity orders in 32%, the re-order points were adjusted according to the EOQ and q,R models; Safety stock levels were reduced 55% representing $450,000 pesos against the initial inventory of 1’000,000 pesos.