Design of a purchases and inventories management of a cleaning products distribute company

The Company under study dedicated to the distribution of cleaning products has presented high operating costs resulting from a disorganized management in the processes of purchases and inventories. This is a problem that happens to many companies in the retail sector because, it does not have tools or controls that allow it to evaluate its development in such processes. To solve this problem, a management of purchases and inventories is proposed based on tools that involve the development of demand forecasting in order to be able to evaluate the trend and fluctuation of the demand, so that the company is prepared for any change. On the other hand, an ABC classification of products to be able to take into account those products that have a higher turnover. In addition, the development of economic lots, safety stocks and replenishment points to track inventories in the warehouse. Finally, an adequate control of the management by means of procedures, policies and formats that will allow a standardization and a correct flow of said processes. All this, in order to contribute to the reduction of operating costs and increase the utility of the company.