An Inventory Policy for Slow and Fast Movers in a Petrochemical Plant: A Case Study

Abstract

The present paper deals with a real life case study which was carried out in a large petrochemical company. A central storehouse contains spare parts, articles of consumption and equipment. The continuous increase of inventory and the substantial depreciation due to deterioration required the existing inventory procedure to be evaluated. An ABC-analysis was carried out and appropriate models for different classes of items were developed. After evaluation of these procedures in an inventory simulator, the proposed methods were introduced in practice.