An inventory management system for Özaltın Construction and Trading Company

Abstract

This study basically deals with establishing an inventory management system for Ozaltin Construction and Trading Company. It is aimed at improving the inventory control system through better allocation of operating funds and managerial efforts to the items in the inventory. The study starts with a classification system, where items are ranked in descending order of importance. The classification criteria are conditions of supply, consumption and storage, and the monetary usage rate of the items. The categorization highlights the items in inventory that really require the necessary attention. The rest of the study deals with various decision systems for these items on when to place an order. Considering the increases in inventory holding costs, as well as the penalties of delaying a job, it is clear that even small improvements will yield to considerable amount of savings.