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Inventory management based on forecast of aggregated sales using simulation

The increase of the global economy, the market competition and the technology demand more flexible and faster organizations. Despite the great production volume and its consequent increase of the lead time, the metallurgy industry is not out of this game. In this context, a good supply inventory policy may be a powerful tool. The article presents a contribution for the inventory decision process in a wire drawing industry. A descriptive mathematical model was built to support the supply order process of each product. The company supplied the key information of the model: aggregated sales of final products; forecast sales; supply items historical series; supplier’s performance and order’s strategy for the period. As the system involves stochastic variables, it was defined safety stocks to avoid production interruption and final products delivery interruption.

Inventory; forecast sales; simulation; safety stock; metallurgy


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