Improvement Proposal in Inventories at an Automotive Supply Company Settled in Mexico

Abstract

Controlling inventories and achieving effective management of them can significantly improve the profits to any company. This chapter presents a case of study of an automotive supply company that has operational problems due to over inventories. An ABC study and the economic order quantity model (EOQ) for 942 raw materials are presented promptly in order to increase the rotation efficiently, the yield of their inventories, as well as to minimize the logistics costs and maximize medium and long-term operations.