The research carried out assumed the objective that a business-based unit be able to use the methods for better inventory control by applying classification methods to products and policies that allow calculating the standards that establish adequate levels of existence and thus guarantee effective management provisioning subsystem. It was based on a diagnosis and was detected among the main causes of non-compliance, the lack of an inventory policy affecting financial liquidity, increased storage costs and levels of idle inventories and slow movement, which puts at risk compliance with payments to its internal suppliers and the restocking of new merchandise with higher demand.For the information processing, the quantities of materials with demand dependent on the production and management plan were determined for the main products in inventory with independent demand. The Pareto principle was established to determine its rotation, determining its demand, maximum and minimum levels a fixed period according to the method of the economic quantity of the order, the reorder point and decrees for the management of slow moving inventory.the reorder point and decrees for the management of slow moving inventory.the reorder point and decrees for the management of slow moving inventory.
Keywords: demand, management, inventory, supply, cost.
Abstract
The investigation assumed aim a business unit basis to be able to use the methods for better control of inventories using classification methods for products and policies to calculate the rules establishing adequate levels of existence and to ensure effective management supply subsystem. It began with a diagnosis and was detected among the main causes of failure, lack of an inventory policy affecting financial liquidity, increased storage costs and levels of idle inventory and slow movement, which jeopardizes compliance payments to internal suppliers and replenishment of new goods with higher demand. For information processing quantities of materials with dependent demand of production and management plan for the main products with independent demand inventory they were determined. It was established to determine its rotation the Pareto principle,determining its application, maximum and minimum levels fixed period according to the method of economic order quantity, the reorder point and decrees for the management of slow moving inventory.
Keywords: demand, management, inventory, procurement, cost.
Introduction
As a result of the collapse of socialist change, Cuba was affected from an economic point of view, so many companies assumed the purchase of a considerable volume of products and raw materials in order to guarantee production and service processes. Over the years, a considerable volume of these products and raw materials have expired, due to their useful life or due to the existence of new technologies, which has caused the excessive existence and money mobilized in warehouses, affecting the liquidity of the company.
Hence the need for proper financial management of inventories. Within financial management, inventories occupy an area of great importance, arising from the differences between time and location of demand and supply. They are used as buffers between supply and demand, from the customer's point of view, the inventory of an item should contain as many units as can be demanded. (Tejero, 2011: 20).
Considering its conceptualization as a starting point, the Ministry of Finance and Prices (MFP) refers, in its valuation standards, “that inventories are tangible goods constituted by acquisition, in the process of elaboration or finished, either for consumption or for its commercialization ”, (Echeverría Hernández, 2002: 203). Therefore, to decide what to acquire (invest) refers to reviewing what amount of assets are necessary for the company to continue operating, as well as what each of these investments are used for.
The current environment that surrounds each of our companies requires them to continually adapt to a series of circumstances that set the guidelines for social, political and economic behavior.
In order to comply with the new policies outlined, companies need to have a good organization and administration of the available resources, therefore, this research will address conceptions that allow companies to guarantee an efficient administration of inventories, depending in large part planning, which must be done on the basis of financial knowledge, which allows the achievement of their objectives and goals.
In relation to the above, “inventory in the business world is the set of own goods available for sale to customers. It becomes cash within the operational cycle of the company, so it is considered as a current asset ”. (Sabina Pérez, 2007: 15).
(Order delivery time) (Daily demand)
The Reorder point R is expressed in units.
In controlling inventories and coordinating purchases for production, there must be a balance to ensure proper distribution of material receipts rather than distribution of purchases. Hence, the important thing is the planning of the materials to be received in the course of each period.
Slow moving inventory
Through the study it was agreed to create the function of Inventory Manager, for the determination, monitoring and control of idle inventories and slow movement, appointing the Logistics Director to carry out these functions.
Given this appointment, the Company's Management decided to train the Logistics Director in Financial Administration and Inventory Management.
The Logistics Director once trained was given the task of:
- Establish parameters that allow controlling inventory levels to efficiently ensure processes: inventory rotation, replenishment cycles, necessary coverage, maximum and minimum inventories, among others Identify, mobilize and determine the final destination of immobilized inventories. the informative dashboard to know the situation of their inventories in real time Establish the terms to be declared immobilized inventories Establish internal control mechanisms that allow evaluating compliance with the parameters defined for the control of immobilized inventories, this task is carried out in conjunction with the Financial Accounting Director. Create a Show Rom area to keep immobilized inventories displayed and separated.Propose to the Company the liquidation of these inventories with the following order of priority: Within the organization, within the territory, to the workers, sale to the Specialized Company of the Ministry of Internal Trade Analyze before its shipment to Raw Materials, the possible use in other activities within the same Company.
Outcome
The application of these methods in Cuba, particularly in our UEBs, should be intended for salespeople and managers as an information base for real-time analysis for inventory management, control and decision-making. Previously carrying out a financial analysis, an inventory analysis and finally a new evaluation for new investments that demonstrates financial availability, accounts payable to suppliers and their old age, stocks and demands for decision making when investing in new inventories.
Of the methods presented, it cannot be said that one is more beneficial than the other. Depending on the characteristics of the company, it could be used in an integrated way, seeking efficiency in the control of inventory management, achieving:
- Have the minimum investment in stock, in raw materials and component parts, in process materials and finished products Maintain the level of stocks of raw materials and component parts in such a way that production operations do not suffer delays due to shortages. Possible investment in stocks of finished products Maintain the level of stocks of finished products according to customer demand in order to provide a timely delivery service Discover in time the materials or products that have no movement and those that have been deteriorated or obsolete Establish good custody in warehouses to prevent leaks, waste or careless abuse.
In the EOQ model, the demand is known and constant over time. This hypothesis can be modified, considering that demand varies over time. In this research work we study inventory models whose demand ratio depends on time.
Conclusions
In the analysis developed in this work, emphasis has been placed on elements of different stock management models aimed at determining optimal policies, with the purpose of making decisions aimed at minimizing the total costs of inventory and providing an adequate level of satisfaction to customers. ensuring the disposal of goods or materials in the best conditions to meet your needs and those of the production process.
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