VED & ABC Analysis of Inventories for a Wind Turbine Company

Abstract:

The life in our body is as long the blood is flowing, the moment the circulation of blood is stopped (stagnant) the body becomes dead. The message is anything stagnant become dead or useless. The same mantra of the business organization also. In an organization the larger portion of the current assets is inventories. As long as the inventories are converted to finished goods and the cash realization is happening without any delay with the prescribed time frame the organization is moving forward. The movement the inventories are stagnated for a long period the inventory cost will kill the organization. There are many different inventories controlling techniques are used by different company depending upon their situation. Mainly automotive, FMCG, Pharmaceuticals companies adopted many different techniques. I have not come across any such research paper for wind turbine companies. The objective of this paper is to study the entire raw material inventory of a wind turbine company and give the solution for the optimization of inventory.The organization where I did the study is an assembly of Nacelle, Hub, and manufacturing of Blade. All other components are outsourced. The entire inventory system to be studied, and establish the ABC & VED analysis and merge both VED& ABC matrix analysis, Establish critical inventories to be focused by the top management for optimization of inventories. Such study will give a major focus by the management and control the inventories based on sales order and project installation. This will give major benefit to the organization.

• Periodical: Applied Mechanics and Materials (Volume 591)
• Pages: 27-32
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.591.27
• Online since: July 2014
• Authors: P. Kumar*, A. John Rajan, K.N. Balan
• Keywords: ABC Analysis, Inventory Optimization, Major Focus, VED Analysis, VED-ABC Matrix, Wind Turbine (WT)

References

[1] Dinesh Dhaka, Dr. Lokeswara Choudry, IOSR-JBM, ABC classification for Inventory optimization , 15 ( 2013).

[2] M. Devnanai A.K. Gupta, ABC and VED analysis of pharmacy store of a tertiary care teaching research and referral healthcare Institute of India , Published in S. Young Pharm, (2010).

DOI: 10.4103/0975-1483.63170

[3] Dr. Poorwa wandalkar, Dr.P.T. Pandit & A.R. Zite, published, ABC and VED analysis of the drug store of a tertiary care teaching hospital, Indian journal of basic and applied medical research , (2013).

[4] Mock D and Millar A, The make or buy decision added uncertainty, Journal of systems Management , 2(6) (1970) pp.13-23.

[5] Peter F. Wanke and Walter Zinn, Strategic logistics decision making, Emerald Group Publishing Limited, 34(6) , 0960-0035(2003).

[6] Poppo L, Olin JM and Zenger T, Opportunism, routines, and boundary choices: A comparative test of transaction cost and resource-based explanation for Make-Or-Buy decisions,  (1995) pp.42-46.

DOI: 10.5465/ambpp.1995.17536261

[7] Richard J. Tersine and Michele G. Tersine, Inventory Reduction-Preventive and Corrective Strategies, Emerald Group Publishing Limited 1(2) (1990) pp.17-24.

DOI: 10.1108/09574099010804563

[8] Quinn J.B., Strategic outsourcing: leveraging knowledge Capabilities, Solan management review summer, ABI/INFORM Global, 40(4) (1999) p.5.

[9] Dimitris Bertsimas and Aurelie Thiele, A Robust Optimization Approach to Inventory Theory, Operation Research , (2006) 54(1): 0030-364X.

DOI: 10.1287/opre.1050.0238

[10] Elwood Buffa S. , Perspective in operation management essays, In: Tang C S and Deemerster L (eds) Mathematical models in IC manufacturing, London: kluwer, (1993) p.389.