Dr. Sengottuvelu C
Abstract
This paper focuses on application of selective inventory control techniques namely, ABC, FSN SDE, and MUSIC-3D analysis in warehouse inventory management of traded parts. MUSIC-3D approach was applied by combining all the three techniques namely, ABC, FSN and SDE analysis. Inventory is classified into raw materials, work-in-progress, finished goods, spare parts and MRO items. Inventory is the life line of any manufacturing company in many ways. Inventory plays an important in increasing profitability and return on investment. So, inventory should be managed properly. Supply chain management is all about managing demand and supply. One of the important component in any supply chain is inventory. The main objective of this paper is to administer single dimensional inventory techniques and three dimensional approach in managing traded parts inventory. This study was conducted at Auto Connection Systems Company in Kerala, India. Primary data was collected by pooling data from their ERP- SAP system. The company handles about 720 traded parts. All the 720 traded parts are considered in this study. Firstly, ABC classification, FSN and SDE analysis are conducted individually. Then, 3D analysis was conducted by combining all the three inventory control techniques. It is recommended that the company should exercise strict control on ‘A’ class items, Non-moving items, and Scarce items. Moderate control on ‘B’ class items, Slow moving items, and Desirable items. Less control on ‘C’ class items, Fast moving items and, Essential items.
Keywords- Inventory control techniques, ABC, FSN, SDE, MUSIC 3D analysis, traded parts.