Economic measuring of losses derived from inventory management at an oil refinery

Abstract

PurposeThe purpose of the present study is to identify and measure economically the losses related to inventory management in an oil refinery.Design/methodology/approachAn exploratory case study was conducted to search for a better understanding of a phenomenon and its implications.FindingsThe results obtained based on the case study suggest the need to observe this phenomenon in other contexts and take managerial actions that will eliminate waste as one of the forms of generating value for the company. The results were related to each other and to the traditional metrics of inventory management and can be used as a base to improve mathematical and computational models for production planning and scheduling and also performance indicators.Originality/valueNo studies have been found that attempt to measure the economic losses derived from inventory management and their capacity in this environment.

Impacts of marketing decisions on delivery performance and flexibility of the operations area

“…Although the benefits of collaboration between these areas are discussed in the literature, in practice, integration requires effort from organizations. On the one hand, the lack of coherence in marketing decisions may lead to constant changes in competitive priorities for the operations area, generating negative impacts on manufacturing (Miltenburg, 2008; Chi et al , 2009; Machado et al , 2020). Among such impacts, there are resource adaptation, unnecessary cost and investment increases or non-priority resources (Hausman et al , 2002; Bouranta and Psomas, 2017).…”

Development of a New KPI for the Economic Quantification of Six Big Losses and Its Implementation in a Cyber Physical System

“…As can be seen, Lean Manufacturing methodology is directly related to cost reduction. Machado et al [18] asserted that the implementation of lean manufacturing tools is beneficial for companies, thus, they can obtain advantages in quality, inventory management, elimination of losses, and improvement of the financial and operational controls. Particularly, this identification and reduction of losses, which are considered as activities that do not add value, but add cost to the product that customers are not willing to pay, allows the reduction in manufacturing costs [19].…”