A system study on the roofing profiles of Philmetal Products Incorporated

The system study is about inventory management system of the of PhilMetal Carmona plant. The primary focus of the inventory system is the three roofing profiles of the company namely the Spandek, Econocorr, and the Steeltile. After a thorough study of the Carmona plant\u27s present system, it was found out that the Carmona plant had an opportunity cost of P35,576,786,66 in 1997 due to the non-availability of raw materials for production. Further analysis of the problem uncovered the cause of the problem. The Inventory Planning and Control (IPC) department of the plant did not have a formal inventory scheduling process. The IPC department only orders raw materials when the job orders arrive. The IPC is not able to check its stock position to determine whether there are enough raw materials for production. The study proposed three inventory scheduling systems and evaluated the alternatives using the Kepner-Tregoe decision analysis. Cost efficiency, storage considerations, and ease of implementation were used as the criteria for evaluating the different alternative solutions. The Materials Requirement Plan was chosen as the best alternative. With the proposed system the company would be able to realize an additional sales of P 33, 923,432.66. Implementation of the proposed system will require 13 weeks to accustom the plant with the new system