Title
Sales & Operations Planning and EOQ Model to Increase Dispatch Effectiveness: Explosives Company
Date Issued
01 January 2022
Access level
metadata only access
Resource Type
conference paper
Publisher(s)
Institute of Electrical and Electronics Engineers Inc.
Abstract
The strong influence of the mining in the national GDP and that explosives companies are part of the extraction industry and mineral processing supply chain, drive the analysis of the finished product dispatch process of an explosives company to ensure its profitability and to supply the mining industry. According to its performance during 2019, low effectiveness of the dispatch process is defined as the main problem, at 66.03% whereas the target value is 90.25%. Deficient dispatch planning, stockouts and the non-existent control of transportation providers were identified as root causes. Based on the literature reviewed, a Plan-Do-Check-Act model is proposed to increase the effectiveness of the dispatch process by applying the Sales & Operations Planning (S&OP) methodology in main collaboration with Sales & Operations Execution (S&OE) and the Economic Order Quantity (EOQ) model, thus improving dispatch plan compliance rates by 5%, the service level of transportation companies by 39% and stockouts by -20%, to ensure the effectiveness of the proposed model. Unlike other studies, this one is focused on the use of resources and not on dispatch execution. The implementation of this model generated an increase in process effectiveness of 86%.
Start page
196
End page
200
Language
English
OCDE Knowledge area
Minería, Procesamiento de minerales Ingeniería industrial
Scopus EID
2-s2.0-85137027115
Resource of which it is part
Proceedings - 2022 8th International Conference on Information Management, ICIM 2022
ISBN of the container
9781665451741
Conference
8th International Conference on Information Management, ICIM 2022 Cambridge25 March 2022through 27 March 2022
Sources of information: Directorio de Producción Científica Scopus