Economic measuring of losses derived from inventory management at an oil refinery

Abstract

PurposeThe purpose of the present study is to identify and measure economically the losses related to inventory management in an oil refinery.Design/methodology/approachAn exploratory case study was conducted to search for a better understanding of a phenomenon and its implications.FindingsThe results obtained based on the case study suggest the need to observe this phenomenon in other contexts and take managerial actions that will eliminate waste as one of the forms of generating value for the company. The results were related to each other and to the traditional metrics of inventory management and can be used as a base to improve mathematical and computational models for production planning and scheduling and also performance indicators.Originality/valueNo studies have been found that attempt to measure the economic losses derived from inventory management and their capacity in this environment.