EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study

Jaime Abel Jiménez Ayhuasi; José Antonio Taquía Gutiérrez

doi:10.3233/ATDE230038

EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study

Jaime Abel Jiménez Ayhuasi
, José Antonio Taquía Gutiérrez

Industrial Engineering School

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

Abstract

The main objective of this research article is to optimize costs and logistic KPIs applying an economic order quantity (EOQ) inventory model in a metal-mechanic MSE with intermittent demand. Firstly, the forecast model with the lowest MAD and ECM is selected. The object under study, after ABC classification, belongs to the family of products located in class A due to its valuation and participation in the inventory. The Croston method is considered the most effective forecast model. Secondly, an aggregate planning is developed to satisfy the projection. Then, the EOQ or Wilson model is implemented to reduce inventory costs. Finally, to validate the calculated data, a simulation model is built in Arena with 50 replications. As a result, the inventory costs were reduced to 22.6%

Original language	American English
Title of host publication	EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study
Editors	Loon-Ching Tang
Place of Publication	The Netherlands
Publisher	IOS Press
Pages	128 - 139
Number of pages	11
Volume	35
ISBN (Electronic)	978-1-64368-409-3
ISBN (Print)	978-1-64368-408-6
DOIs	https://doi.org/10.3233/ATDE230038
State	Published - 27 Jul 2023
Event	10th International Conference on Industrial Engineering and Applications- Asia - Phuket, Thailand Duration: 4 Apr 2023 → 6 Apr 2023 Conference number: 10 http://www.iciea.org/

Publication series

Name	Advances in Transdisciplinary Engineering
Publisher	IOS Press
Volume	35
ISSN (Print)	2352-751X
ISSN (Electronic)	2352-7528

Conference

Conference	10th International Conference on Industrial Engineering and Applications- Asia
Abbreviated title	ICIEA-ASIA
Country/Territory	Thailand
City	Phuket
Period	4/04/23 → 6/04/23
Internet address	http://www.iciea.org/

Access to Document

10.3233/ATDE230038

Cite this

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title = "EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study",

abstract = "The main objective of this research article is to optimize costs and logistic KPIs applying an economic order quantity (EOQ) inventory model in a metal-mechanic MSE with intermittent demand. Firstly, the forecast model with the lowest MAD and ECM is selected. The object under study, after ABC classification, belongs to the family of products located in class A due to its valuation and participation in the inventory. The Croston method is considered the most effective forecast model. Secondly, an aggregate planning is developed to satisfy the projection. Then, the EOQ or Wilson model is implemented to reduce inventory costs. Finally, to validate the calculated data, a simulation model is built in Arena with 50 replications. As a result, the inventory costs were reduced to 22.6\%",

author = "Ayhuasi, \{Jaime Abel Jim{\'e}nez\} and Guti{\'e}rrez, \{Jos{\'e} Antonio Taqu{\'i}a\}",

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language = "American English",

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pages = "128 -- 139",

editor = "Tang, \{Loon-Ching \}",

booktitle = "EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study",

note = "10th International Conference on Industrial Engineering and Applications- Asia, ICIEA-ASIA ; Conference date: 04-04-2023 Through 06-04-2023",

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}

Ayhuasi, JAJ & Gutiérrez, JAT 2023, EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study. in L-C Tang (ed.), EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study. vol. 35, Advances in Transdisciplinary Engineering, vol. 35, IOS Press, The Netherlands, pp. 128 - 139, 10th International Conference on Industrial Engineering and Applications- Asia, Phuket, Thailand, 4/04/23. https://doi.org/10.3233/ATDE230038

EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study. / Ayhuasi, Jaime Abel Jiménez; Gutiérrez, José Antonio Taquía.
EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study. ed. / Loon-Ching Tang. Vol. 35 The Netherlands: IOS Press, 2023. p. 128 - 139 (Advances in Transdisciplinary Engineering; Vol. 35).

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

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PY - 2023/7/27

Y1 - 2023/7/27

N2 - The main objective of this research article is to optimize costs and logistic KPIs applying an economic order quantity (EOQ) inventory model in a metal-mechanic MSE with intermittent demand. Firstly, the forecast model with the lowest MAD and ECM is selected. The object under study, after ABC classification, belongs to the family of products located in class A due to its valuation and participation in the inventory. The Croston method is considered the most effective forecast model. Secondly, an aggregate planning is developed to satisfy the projection. Then, the EOQ or Wilson model is implemented to reduce inventory costs. Finally, to validate the calculated data, a simulation model is built in Arena with 50 replications. As a result, the inventory costs were reduced to 22.6%

AB - The main objective of this research article is to optimize costs and logistic KPIs applying an economic order quantity (EOQ) inventory model in a metal-mechanic MSE with intermittent demand. Firstly, the forecast model with the lowest MAD and ECM is selected. The object under study, after ABC classification, belongs to the family of products located in class A due to its valuation and participation in the inventory. The Croston method is considered the most effective forecast model. Secondly, an aggregate planning is developed to satisfy the projection. Then, the EOQ or Wilson model is implemented to reduce inventory costs. Finally, to validate the calculated data, a simulation model is built in Arena with 50 replications. As a result, the inventory costs were reduced to 22.6%

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BT - EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study

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PB - IOS Press

CY - The Netherlands

T2 - 10th International Conference on Industrial Engineering and Applications- Asia

Y2 - 4 April 2023 through 6 April 2023

ER -

EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study

Abstract

Publication series

Conference

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10th International Conference on Industrial Engineering and Applications- Asia (Event)

Urban logistics applied to retail distribution of products and services

Supply and Demand planning balance

Cite this

EOQ Inventory Model in a Metalworking MSE with Intermittent Demand: A Case Study

Abstract

Publication series

Conference

Access to Document

Other files and links

Activities

10th International Conference on Industrial Engineering and Applications- Asia (Event)

Projects

Urban logistics applied to retail distribution of products and services

Supply and Demand planning balance

Cite this