Open Access Open Access  Restricted Access Subscription or Fee Access

Study and Analysis of the Slow Moving Inventory Using Second Order Runge–Kutta Method in a Printing and Packaging Industry

V. Govindarajalu, V.S. Senthil Kumar

Abstract


The objective of this paper is to present a simple method to reduce the slow moving inventory in industry. The materials management department procures paper boards of various sizes based on customer requests. To find out slow moving nature of material in inventory from the data collected from the industry theoretical root cause analysis was carried out. Various practical reasons for slow moving items were identified. From the analysis, it is observed that the customer often go for order cancellation or specification change which leads to the generation of slow moving material. This paper describes a new approach based on modified Runge-Kutta method for identifying the slow moving items on weekly and monthly basis in a large scale printing and packaging
industry.


Keywords


Modified Runge-Kutta Method, Root Cause Analysis, Simulation and Slow Moving Inventory

Full Text:

PDF

References


Bharani Kumar A.S., Govindarajalu V. and Senthil Kumar V.S., “Analysis of Reason and Customer in generation of Obsolete and Slow Moving Inventory for Printing and Packaging Industry,” Third national conference on Management Science and Practices, ORSI – Ahemadabad. Vol.3, pp.31-32. Mar.2008

Alexandre Dolgui and Maksim Pashkevich “Demand forecasting for multiple slow moving items with short requests history and unequal demand variance” IJPE vol. 112, issue 2, pp. 885-894. Apr.2008.

Barnard E-Smith and Ramakrishna R.Vemuganti “A learning model for inventory of slow moving items” IIE Transactions, 1545-8830, volume 1, issue 3, pp. 274-277,1969

S.Kalpakam and K.P.Sapna “Optimum ordering policies for expensives low moving items” Applied Mathematics letters, vol. 11 issue 3, pp.95-99, May 1998

Edward A,Silver and Diane P. Bischak “Bayesian estimation of the rate at which a process monitored by a chart goes out of control” IJPR, vol.42 issue 6, pp. 1227-1242.

V.Govindarajalu, V.S.Senthil Kumar and S.Balaji, “Study and analysis of the slow moving inventory of boards in a printing and packaging industry” Indore Management Journal (IJM)-IIM Indore Journal –Special issue on ORSI 2010 papers. “to be published”.

James A.G Krupp. “Obsolescence and its impact on Inventory Management,” Prodn. Inventory Mgmt. 18, pp. 67-80, 1977.

Richard J.Tersine and Richard A.Toelle, “Optimum stock levels for excess in inventory items,” Journal on Operation Management vol.4,pp. 245-258, 1984.

Richard A.Toelle and Richard J.Tersine, “A dynamic programming method for determining optimum liquidation quantities for slow moving inventories,” Computers Ind. Engineering vol.22,no.3, pp. 353-358,1992




DOI: http://dx.doi.org/10.36039/AA042011002

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.