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Inventory Aging: An Impediment to the Value Chain - A Case Related to the Automotive Industry

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Abstract: The main focus of this paper is to reduce the inventory aging in an automotive parts industry which directly reduces the cost. The reduction in cost will be a great competitive advantage for the company to have in this competitive market arena. To achieve the objective the inventory management systems have been designed and integrated with the relevant information systems such as (warehouse management system) in order to keep accurate and most current information on to the computer screens for better traceability of the variants. The ABC analysis has been done to categorized the different variants according to which the economic order quantity have been identified for each category of variants to get optimum inventory level.

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