Lean Inventory Management Model to Reduce Defective Products in Peruvian Baking SMEs

Abstract

The demand of the baking industry has increased steadily in recent years due to which the sector must also face new challenges involving cost, time, and quality of products; it must also achieve optimal profitability rates and contribution margin. According to the aforementioned, it is essential to plan each stage of the processes, the forecast of demand, supply of materials and consumables, production capacity, and distribution and transportation of products. An essential part of these considerations is inventory and warehouse management. Here, we propose a method that makes use of tools such as material requirement planning, economic order quantity, supplier approval, and standardization, which aims to improve the current defective product indicator of 11.43% generated by poor inventory management. After the implementation of the pilot plans, a reduction of 60% was achieved to sustain the effectiveness of the integrating model, the improvement was corroborated with a simulation, obtaining the same results.