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PDCA Model for Increasing the Inventory Turnover Rate through Integrate ABC, 5S, Kanban and Cycle Counting in a Peruvian Pharmaceutical SME

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

The research develops a PDCA model proposal for products warehouse management in a company belonging to the Peruvian retail pharmaceutical sector to optimize inventory management. This is due to the identification of the main problem, which is the low annual inventory turnover during the last year, which has a value of 2.10. This problem in question represents a technical gap in the annual inventory turnover rate of 2.86 with respect to the average between research articles and an organization established in Peru; and a negative economic impact, which represents 11.81% of the annual income for 2021. Based on the literature review, the contribution of this project consists of the development of an ABC analysis, optimization methods and process control such as the 5S methodology, Kanban tool and cycle counting. The main results obtained were the increase in the annual inventory turnover rate by 3.94, the decrease in the percentage of products not located by 0.80%, the decrease in the percentage of products in poor condition by 2.79% and the increase in the accuracy of registration at 97.21%. The research work showed that the integration of Lean Manufacturing tools, through a PDCA model, will achieve a broader solution to the problems generated by poor warehouse and inventory management.

Original languageEnglish
Title of host publication9th International Conference on Industrial and Business Engineering, ICIBE 2023
PublisherAssociation for Computing Machinery
Pages198-205
Number of pages8
ISBN (Electronic)9798400708824
DOIs
StatePublished - 22 Sep 2023
Event9th International Conference on Industrial and Business Engineering, ICIBE 2023 - Beijing, China
Duration: 22 Sep 202324 Sep 2023

Publication series

NameACM International Conference Proceeding Series

Conference

Conference9th International Conference on Industrial and Business Engineering, ICIBE 2023
Country/TerritoryChina
CityBeijing
Period22/09/2324/09/23

Keywords

  • 5S
  • ABC analysis
  • Cycle Counting
  • Inventory management
  • Kanban
  • Lean
  • Pharmacy

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