Agile Inventory Management Model Applying Cycle Counting and 5S′s to Improve Inventory Record Accuracy in SMEs Engaged in Trading Hardware and Construction Items

Abstract :

This research study proposes an agile inventory management model, implementing cycle counting and 5S methodology, in order to increase inventory accuracy rate by more than 90% in a glass, aluminum, and hardware trading enterprise. The initial scenario showed a 30% inventory accuracy rate for the Class A glass family group. We proposed a cycle count program that improved this rate so that in the first audit it grew to 35% and went up to 95% in the fifth audit. Finally, the results of the study show that the integration of Lean concepts and inventory management methodologies in an agile framework improves the state of an enterprise that faces an inventory inaccuracy problem.