Improvement of inventory management policies

Abstract

This report consists of an inventory problem identified and solved at the company MineEquip. This was done by investigating literature relevant to the field of the inventory problem together with the use of industrial engineering principles, methods, tools and techniques. The focus of the inventory project is on item classification, sales analysis and inventory policies. MineEquip’s largest asset on its balance sheet is inventory. The Company also has large expenses related to financing and maintaining inventories. Furthermore MineEquip experiences problems from their supply and demand sides of their supply chain. Therefore proficient inventory management policies that will enable the Company to manage their inventory at an optimal level have to be in place.