Rationalization of Raw Materials Supply in a Manufacturing Company—Case Study

Abstract

The primary objective of the article is rationalization of raw material supply to the steel warehouse of a manufacturing company. The study was conducted at a company manufacturing stainless steel components. The seat of the company is the Łódzki region. The total headcount is in excess of 50. The study analyzed the movement of the raw material with the highest turnover and largest dimensions. That material was steel. The goal of the study was to collect information required for analysis and evaluation of the existing inventory procurement and warehousing processes for all types of steel used in production. The study covered the period of five months, from August to December, when the turnover of the studied raw material is the greatest. Seventeen types of steel were included in the analysis. In this article, based on the analysis of the selected raw material, the existing manner of raw material purchase order placement and methods of the establishment of new rules and standards for the same are discussed. Simulations of inventory control based on the proposed modifications were also performed. The results of the research show that organizational activities such as review of reordering points of each type of stock, review of deliveries with regard to time and quantity, examination of production orders for each type of stock, and monitoring compliance with the established rules and standards by the workers will result in optimal utilization of the company’s warehouse space.