A model for stock management in a woodprocessing and furniture manufacturing company

Abstract

Stock management includes processes such as stock monitoring, restocking i.e. ordering new stock and preventing stock sell-out. Stock is essential for smooth operation, supply and purchasing. This article develops a model for stock management in a hypothetical woodprocessing company, where part of production is intended foran unknown customer. We designed a model for periodical monitoring of product group stock by using simple exponent regulation and ordering up to the target stock. The adjusted quantities of sales budget are launched into production with the help of a multi-criteria decision-making model. The designed model enables an optimum level of intermediate product stock, unfinished production and the final product stock. Flowchart technique is used for showingthe reshaped process of presenting the sales budget and ordering of materials.

Keywords

• woodprocessing
• furniture manufacture
• stock management
• modelling
• multi criteria decision making