Planning and Managing the Inventories Through the Application of Economics of Scale and Determining Safety Stock Levels in the Manufacturing of Auto Ancillary Industry Based in Pune, India

EasyChair Preprint 11852

Abstract

Inventory planning and management are critical for the auto ancillary industry to balance costs and customer service levels. This research investigates inventory management in the Auto Ancillary Industry in Pune, India, employing the Economic Order Quantity (EOQ), Q-type system, and All Unit Discount models. Data sourced from the industry demonstrates substantial annual cost savings and inventory minimization. Implementing the EOQ model yielded a 46.2% reduction in total holding costs, while the Q-type system surpassed with a 14.6% improvement. Additionally, utilizing the Lots Are Ordered and Delivered Jointly model achieved a remarkable 76.64% decrease in safety stock. These findings underscore the efficacy of these models in optimizing inventories, minimizing costs, and enhancing competitiveness in the auto ancillary sector.Inventory planning and management are critical for the auto ancillary industry to balance costs and customer service levels. This research investigates inventory management in the Auto Ancillary Industry in Pune, India, employing the Economic Order Quantity (EOQ), Q-type system, and All Unit Discount models. Data sourced from the industry demonstrates substantial annual cost savings and inventory minimization. Implementing the EOQ model yielded a 46.2% reduction in total holding costs, while the Q-type system surpassed with a 14.6% improvement. Additionally, utilizing the Lots Are Ordered and Delivered Jointly model achieved a remarkable 76.64% decrease in safety stock. These findings underscore the efficacy of these models in optimizing inventories, minimizing costs, and enhancing competitiveness in the auto ancillary sector.

Keyphrases: Economic Order Quantity, Inventory Management, Q-type System Model, Replenishment, safety stock

@booklet{EasyChair:11852,
  author    = {Himanshu Meshram and Mehek Tharwani},
  title     = {Planning and Managing the Inventories Through the Application of Economics of Scale and Determining Safety Stock Levels in the Manufacturing of Auto Ancillary Industry Based in Pune, India},
  howpublished = {EasyChair Preprint 11852},
  year      = {EasyChair, 2024}}