Stock Management and Control in a Local Shop of Animal Products

Abstract

Due to globalization, the achievement of competitiveness has become fundamental to the organizations that try to be leaner each day, reducing costs, and thus allowing other investments. Thereby, stocks are achieving each day more importance due to its relevance in the company economic stability. A great management allows products never miss in stock and a great management also avoids excess in leftovers. In this project, the importance of stock management carries the objective of optimizing the investments over stocks and of decreasing losses caused by obsolescence in a retail micro company that sells goods for animals. For that purpose, the ABC Classification has been applied in which the main products referred to demand and profits were identified. The supply policy adopted for those products was the Economic Lot Size, calculating the safety stock and the resupply point. It was possible to calculate order costs, maintenance and material through collected data during meetings with the company owners and this way it was possible to realize that the economic buying batch applicability would generate savings relating to the current company model. In addition to the decreasing of the risk of losing items and keeping the safety stock in order to face the demand fluctuations.