5th African conference on Industrial Engineering and Operations Management, South Africa

Improving Inventory Management in Peruvian Supermarkets through the Implementation of FEFO, SARIMA, and EOQ Tools to Reduce Non-Conforming Product Index

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Abstract

The research aimed to address the problem of high levels of non-conforming products in a Peruvian supermarket. The study identified that the forecasting errors were not the cause of the problem, as there were no stockouts when fulfilling an order, and products did not expire before reaching the sales stage. The researchers implemented Lean tools such as FEFO, SARIMA, and EOQ and found that implementing these tools in the software Arena reduced the percentage of products by expiration date by 5%. Additionally, implementing EOQ helped reduce the number of days the supermarket did not have stock. The researchers concluded that these tools could be used to reduce the index of non-conforming products in the supermarket's inventory management, which would help increase revenue and reduce costs.

Published in: 5th African conference on Industrial Engineering and Operations Management, South Africa, Johannesburg, South Africa

Publisher: IEOM Society International
Date of Conference: April 23-26, 2024

ISBN: 979-8-3507-0549-2
ISSN/E-ISSN: 2169-8767