Aggregate Inventory Management. Applied Study

Abstract

Central medical supplies cooperation – Sudan have some problems in their inventory management system, these problems are summarize in: ١. High quantity of familiarization inventory. ٢. Higher inventory cost. ٣. Inaccurate aggregate inventory data which are exchange between different departments. ٤. Out stock for some stored items. The research solved these problems through gathering the necessary information for the ordering quantity for any item and order point and how much the reserve stock. The group of seven items data are use for study purposes, a database system was made using Microsoft Office Access language for this items group, modifying the existing method which is use for calculating the inventory lot size – order point – safety stock to develop the current system and apply the aggregate inventory management concepts. After modifying the system the total order quantity of the seven items is reduce from 198645 items with the total cost $466854 to the 146156 items with the total cost $364522, with the reduction of 22% in inventory investment without increase in expense and these lead to reduce the familiarization rate and total inventory cost. Modifying the current method used for determining the reserve stock, lead to reduce the reserve stock from 231753 to 11238 which is lead to reduce the inventory holding cost and minimize the familiarization from aggregate inventory. Re-order point in the current system is determining by double of reserve stock without putting the demand during lead time in account (high – low). This v method is modifying in proposed system by including the demand during lead time and adding the reserve stock to it to determining the re-order point, and comparing the results there is reduction in this quantity form 463505 to 232103 for group of items.