Implementation of inventory policy: a supporting decision-making tool for a food distribution company

Abstract

In a competitive environment that is the market for the distribution of food and cleaning products to private homes and companies, operating at a low cost is a matter of survival. Proper inventory management is the key point for operational efficiency. Currently, the studied company operates with two warehouses, one of its own and the other rented. Faced with the impossibility of continuing to rent this warehouse, the moment of decision-making has arrived: to buy the rented warehouse or not to buy it? The objective of this work is to carry out an investigation of the ideal inventory and purchasing policy of the company, to establish the best way to manage its operations, and thus define the adequate levels of inventories, which will provide the identification of the necessary storage capacity, in order to guarantee a balanced operation that offers a level of service to the end customer. This necessary storage capacity will define the need for space, and therefore, it will help the company to make the best decision, as well as supporting a new level of customer service and reducing inventory costs.