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Optimising a model of minimum stock level control and a model of standing order cycle in selected foundry plant

Szymszal J., Lis T., Przondziono J., Nowacki K., Kliś J.

Archives of Foundry Engineering

2013

Vol. 13, iss. 3

97--100

It has been found that the area where one can look for significant reserves in the procurement logistics is a rational management of the stock of raw materials. Currently, the main purpose of projects which increase the efficiency of inventory management is to rationalise all the activities in this area, taking into account and minimising at the same time the total inventory costs. The paper presents a method for optimising the inventory level of raw materials under a foundry plant conditions using two different control models. The first model is based on the estimate of an optimal level of the minimum emergency stock of raw materials, giving information about the need for an order to be placed immediately and about the optimal size of consignments ordered after the minimum emergency level has occurred. The second model is based on the estimate of a maximum inventory level of raw materials and an optimal order cycle. Optimisation of the presented models has been based on the previously done selection and use of rational methods for forecasting the time series of the delivery of a chosen auxiliary material (ceramic filters) to a casting plant, including forecasting a mean size of the delivered batch of products and its standard deviation.