{"title":"Just-In-Time for Reducing Inventory Costs throughout a Supply Chain: A Case Study","authors":"Faraj Farhat El Dabee, Rajab Abdullah Hokoma","volume":69,"journal":"International Journal of Industrial and Manufacturing Engineering","pagesStart":1884,"pagesEnd":1888,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/6499","abstract":"Supply Chain Management (SCM) is the integration\nbetween manufacturer, transporter and customer in order to form one\nseamless chain that allows smooth flow of raw materials, information\nand products throughout the entire network that help in minimizing\nall related efforts and costs. The main objective of this paper is to\ndevelop a model that can accept a specified number of spare-parts\nwithin the supply chain, simulating its inventory operations\nthroughout all stages in order to minimize the inventory holding\ncosts, base-stock, safety-stock, and to find the optimum quantity of\ninventory levels, thereby suggesting a way forward to adapt some\nfactors of Just-In-Time to minimizing the inventory costs throughout\nthe entire supply chain. The model has been developed using Micro-\nSoft Excel & Visual Basic in order to study inventory allocations in\nany network of the supply chain. The application and reproducibility\nof this model were tested by comparing the actual system that was\nimplemented in the case study with the results of the developed\nmodel. The findings showed that the total inventory costs of the\ndeveloped model are about 50% less than the actual costs of the\ninventory items within the case study.","references":"[1] R. A. Hokoma, M. K. Khan & K. Hussain, \"Investigation of the senior\nmanagement strategy towards implementing manufacturing, planning\nand control techniques and philosophies within the Libyan cement\nindustry: a case study\", Proceeding of the 23rd ISPE International\nConference on CAD\/CAM, Robotics and Factories of the Future,\nBogota, Colombia, 2007.\n[2] F. El-Dubei & R. A. Hokoma, \"Minimizing inventory costs throughout\nthe supply shain within a cement factory: A Case Study, MEQA, 4th\nAnnual Congress, Dubai, UAE, 2010\n[3] F. Grange, \"Challenges in modeling demand for inventory optimization\nof slow-moving items\". Proceeding of the 1998 winter simulation\nconference. Pp. 1211-1217, 1998.\n[4] M. Mobbs, (2001), The mineral industry of Libya, U.S. geological\nsurvey, available at: <http:\/\/minerals.usgs.gov\/minerals\/pubs\/country>\n[Accessed 17th November 2011].\n[5] R. A. Hokoma, M. Tughar, R. Abdussalam, E. Ramadan & S. Bindra,\nStrategic impact of JIT techniques for construction industry, Proceeding\nof the Second International Engineering Conference on Construction and\nDevelopment, Gaza, Palestine, 2007.\n[6] R. A. Hokoma, M. K. Khan & K. Hussain, Investigation into the Various\nImplementation Stages of Manufacturing and Quality\nTechniques\/Philosophies Within the Libyan Cement Industry, Journal of\nManufacturing Technology Management, Volume 19, No. 7. Pp. 893-\n906, 2008.\n[7] R. Abdulssalam, R. A. Hokoma, M. Esbiga & H. Omer., Strategy\napplied towards implementing JIT and MRPIUI planning and control\ntechniques within Libyan construction and cement industries,\nproceedings of the international conference on technology management\n(ictm), Kuala Lumpur, Malaysia, 2006.\n[8] R. Operta & P. Taylor, \"Operations Management\". 4th Edition. Mc Graw\nHill, 1992.\n[9] R. Handfield, I. Ernest & J. Nichols, \"Introduction to supply chain\nmanagement\". Michigan State University, Memphis University, pp. 1-\n24, 1999.\n[10] S. Graves & S. Willems, \"Optimizing strategic safety stock placement in\nsupply chains\". Manufacturing & service operations management,\ninform. Winter 2000. Pp. 68-83, 2000.\n[11] F. El Dubei & M. Matoug, A simulation model for minimizing the\ncustomer inventory cost in a supply chain, periodical scientific\ninternational journal, vol. 1, no.2, pp. 14-27, 2006.\n[12] S. Chopra & P. Meindl, \"Supply chain management strategy, planning,\nand operation\". Prentice Hall, Inc.; Upper Saddle River; New Jersey; pp.\n3-60; 169-171; 2001.","publisher":"World Academy of Science, Engineering and Technology","index":"Open Science Index 69, 2012"}