A systems study on the production and inventory management of Concord Scientific and Chemical Corporation

The study is concerned with the manufacturing and inventory system of Concord Scientific and Chemical Corporation. The area of concern of the study is primarily on the production and inventory management of the plant. It was known that the company has a job shop setup in production wherein the finished goods would only be manufactured when the job order is received. After appraising the present system of the company and performing the WOT-SURG situational appraisal, the main problem was determined to be the The Company experienced 77,782 kilogram stock outs, which is comprised of 62 of 147 kinds of raw materials, from August to December of 20113. It was identified and investigated that the main causes of the problem is the Unanticipated Demands and the No Standard Arrangement within Clustered Raw Materials. In line with the determined main problem and causes, the study proposed a system that would enable the company to monitor and track their raw materials. The system is divided into two parts, namely: Implementation of Monitoring Inventory Practices and Implementation of 5S Housekeeping in Warehouse Design. The proposed system uses the probabilistic Inventory Model for determining the recommended maintained inventory levels and Economic Order Quantity to determine the recommended inventory quantity to purchase. The inventory-monitoring model is supplemented by software that would aid the company in monitoring their inventory levels. The proposed warehouse design was evaluated through the Activity relationship Chart that would standardize the arrangement of the raw materials and aid in the tracking of raw material inventory. Furthermore, the proposed system would incur a total cost Php 140, 243 in implementing and Php 15,802.5 in operating the system. Nonetheless the projected benefit of the system is at Php 4,653.00.91 annually. This is addition to the qualitative benefits of standardized record keeping and warehouse allocations, and the minimization of the risk of stock out to 10%