Economic order model EOQ in the inventory of automotive service parts
Abstract
The supply chain is integrated into a network of logistics operations by suppliers, manufacturers, intermediate distributors and finally consumers. Where inventories play the most important role in meeting the exact times and quantities of customer demand, this way setting policies at inventory levels minimizes the risk of late deliveries and helps to reduce total logistics costs. Assuming that inventory management is a fundamental part of business strategic and operational planning. This article therefore addresses the use of the Economic Order Lot Model (EOQ) in an automotive parts spare parts warehouse, establishing inventory policies for spare parts demand in the maintenance area, taking into account the variability of demand and supply times in the application of the model, the optimal quantities to be ordered from the parts of service with respect to the duration of the order cycle are established, supporting the decisions to be taken in the inventory levels of the parts of service, minimizing the logistical costs and improving the quality of the customer service.
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References
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