Inventory planning for continuous demand materials – A case study in chip manufacturing industry: Continuous demand inventory planning in chip manufacturing

Abstract

Inventory is often a valuable asset of a business. Inventory planning is an important function in a manufacturing organization. Improper inventory planning can lead to excess inventory, increasing inventory costs, or lack of inventory, leading to reduced service levels.This article plans inventory for continuous demand spare part materials for a company that assembles microprocessor chips. Spare part materials is classified according to ABC analysis, appropriate planning models for each type of material are used with the goals of minimizing inventory costs and satisfying a desired level of demand.