Improving inventory management in a bookstore in Latin America

Companies around the world should be able to control their operations and keep working on continuous improvement initiatives in order to survive in a very competitive market. One relevant part of the operations in an organization is the supply chain management, where significant costs are associated with inventory management. This paper presents an inventory management case study conducted in a bookstore located in Quito, Ecuador. The management system and policies are analyzed along with the purchasing-related decision making. A root cause analysis is presented, followed by an improvement plan. This plan is consists of two stages: First, a centralized system for inventory control is implemented, supported by the use of statistical process control; second, a technical forecasting method is employed to assist in the purchasing-related decision making process and an inventory management policy is proposed. Results were validated by interviewing the staff.