A systems study on the plant operations department

• Main Authors: Ang, Sharon, Tang, Jenifer, Yao, Beverly
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12089
• Institution: De La Salle University

Executive Summary. This study is concerned with the systems study on the plant operations department of Amwell Manufacturing Corporation. The problem being addressed is the high finished goods inventory value per month of PhP 86,385,900. It is a serious and urgent problem because it exceeds the allotted PhP 50,000,000 by 72.77% on the average and the company wants it to be solved by the end of the year 1999. The system management and these writers believe that they have the significant time and resources to solve this problem. The problem has the following specifications: What: Fast moving products. Where: Finished goods inventory. When: Second half of 1997 How much: Average inventory cost is PhP 19,416,800 After an extensive analysis, it was determined that the problem was caused by the buffer stock and inaccurate forecast. These have negative effects to the system such that average money tied up in finished goods inventory exceeds the allotted by Php 36,385,900 per month and the average holding and storage cost of the excess finished goods inventory amounts to more than Php 869,900 per month. The solution proposed by the proponent is the reduction of buffer stock as well as the examination of the lead-time in production. This solution is estimated to reap a benefit amounting to more than Php 51,500,000.