Optimizing Fill Rate and Inventory Control in Peruvian Bakery SMEs through 5S and MRP Integration

International Journal of Mechanical Engineering

© 2024 by SSRG - IJME Journal

Volume 11 Issue 11

Year of Publication : 2024

Authors : Martin Fidel Collao-Diaz, Martha Valeria Saavedra-Cielo, Wilson D. Calderón, Don Reimer

10.14445/23488360/IJME-V11I11P103

How to Cite?

Martin Fidel Collao-Diaz, Martha Valeria Saavedra-Cielo, Wilson D. Calderón, Don Reimer, "Optimizing Fill Rate and Inventory Control in Peruvian Bakery SMEs through 5S and MRP Integration," SSRG International Journal of Mechanical Engineering, vol. 11,  no. 11, pp. 24-33, 2024. Crossref, https://doi.org/10.14445/23488360/IJME-V11I11P103

Abstract:

Nowadays, Small and Medium Enterprises (SMEs) are exposed to economic losses due to bad decisions, one of the main ones being the management of raw material inventories. This has consequences for the entire production and sales flow. Without the necessary material to produce, there are no products to sell, affecting the satisfaction of demand and, subsequently, the Fill Rate. Therefore, the motivation and objective of this research are to design an inventory management system and analyze the reasons and causes that decrease the fill rate of customers in SMEs in the bakery sector. To address this challenge, the objective is to raise the fill rate from 86% to an optimum of 94%, as indicated by the technical gap. The solutions are based on lean tools such as the 5S-Material Requirements Planning (MRP) methodology and demand forecasting methods. This proposed solution aims to improve the company’s quantitative and qualitative indicators to make bakery industries more competitive in the changing and competitive market.

Keywords:

Fill Rate, Warehouse Management, Inventory, Demand Forecast, 5S, MRP, Bakery Sector.

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