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Dynamic Buffer Management for Raw Material Supply in the Footwear Industry

John Reyes 1, Kevin Alvarez 1, and Rosa Vasquez 2
1. Universidad Técnica de Ambato (Faculty of Systems Engineering, Electronics and Industrial), Ambato, Ecuador
2. Pesticide Action Network, Penang, Malaysia

Abstract—In this paper, the application of inventory buffers is proposed as a management tool for the supply of raw material in the footwear industry. This allows to increase competitiveness and a significant decrease in investment in materials stored in the warehouses. This technique based on the holistic view will achieve the global optimum of the system giving importance to factors that prevent success of companies. In this sense, it is identified that the market demand is the system´s constraint for the development of the master production schedule. Considering this, it is necessary to concentrate all the materials in the central warehouse to establish an optimum inventory levels or buffers. Using a technique of colors materials ordering program is regularly reviewed through dynamic buffer management. As a result, the model improves the way how inventory of materials in the footwear industries is managed for resupply. Giving a priority to the materials low in stock. This generates 18,7 % of annual saving in inventory costs.

Index Terms—raw materials consumption, lead time, buffer, bill of materials, supply chain, priority

Cite: John Reyes, Kevin Alvarez, and Rosa Vasquez, "Dynamic Buffer Management for Raw Material Supply in the Footwear Industry," Journal of Industrial and Intelligent Information, Vol. 4, No. 1, pp. 1-8, January 2016. doi: 10.12720/jiii.4.1.1-8

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