Supply planning to reduce immobilized inventory in a mining explosives factory

A. O. Cavero-Winchez, E. R. Valencia-Quispe, V. H. Ponce-Nunez, J. C. Alvarez-Merino

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

Abstract

One of the most important problems affecting companies that market explosives is excess inventory in warehouses and powders. The case study is presented in a company CAX S.A Peruvian explosives manufacturer that shows poor comprehensive supply chain planning. This leads to the form and increase of frozen inventory representing 15.6% equivalent to 6,172,436.76 and incurring storage costs, maintenance of inventories and final provisions with a value of 9,605,518.05, due to the following causes: inflated needs, lack of capacity constraints, unreported production orders, unplanned orders, lack of capacity constraints of stock security. All this is due to the main problem that proper comprehensive company planning is not carried out. The solution proposal consists of the application of the SCOR and SOP model, which redesign and configure the supply chain improving performance of the logistics processes. As a general framework the company introduced four stages for the development of SCOR: stage 1 Types of processes, stage 2 Process configuration, stage 3 process decomposition and Development of the SOP. The implementation was carried out by means of a pilot, based on the following indicators at the start of the Pilot Material Rotation (4.5). Inventory coverage (4.5 months), OTIF suppliers (93%), Needs level (94%), ERI (99%) e Fixed inventory ( 6, 172,436.76). At the end of the implementation, which was established within six months, the results were Material Rotation (5), Inventory Coverage (3.5), OTIF providers (94%), level of needs (96%), ERI (99%) and immobilized inventory ( 3, 537,634.10).

Original languageEnglish
Title of host publication2020 Congreso Internacional de Innovacion y Tendencias en Ingenieria, CONIITI 2020 - Conference Proceedings
EditorsMonica Andrea Rico Martinez
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728194660
DOIs
StatePublished - 30 Sep 2020
Event2020 Congreso Internacional de Innovacion y Tendencias en Ingenieria, CONIITI 2020 - 2020 International Conference on Innovation and Trends in Engineering, CONIITI 2020 - Bogota, Colombia
Duration: 30 Sep 20202 Oct 2020

Publication series

Name2020 Congreso Internacional de Innovacion y Tendencias en Ingenieria, CONIITI 2020 - Conference Proceedings

Conference

Conference2020 Congreso Internacional de Innovacion y Tendencias en Ingenieria, CONIITI 2020 - 2020 International Conference on Innovation and Trends in Engineering, CONIITI 2020
Country/TerritoryColombia
CityBogota
Period30/09/202/10/20

Keywords

  • Immobilized inventory
  • SCOR
  • SOP
  • cost reduction
  • explosives
  • planning
  • supply planning

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