Inventory Management and Control using ‘Probability Distribution Function’ 2013-01-9098
For any organization, inventory management has come up as a big challenge to handle. Since, there are extensive variations in the products; the hurdles related to this issue get more intensified. Thus, the prediction of correct number of inventory between two different manufacturing systems is difficult and needs absolute understanding about the respective behavior of the system. In this paper the illustrations are about the application of ‘probability distribution function’ (or the PDF) in order to gain understanding about the behavior of the system in different working conditions, such as FTQ, uptime, etc. PDF assists in representing line behavior in terms of graphic distribution and comprehensive. Thus, the process gets easier to control inventory within the confidence level and further saves procurement costs, area of shed and costs of material handling. This is applicable for an automobile OEM that has savings over items with ‘A’ class ranking within procurement cost.