Logistics Management Model to reduce non-conforming orders through Lean Warehouse and JIT: A case of study in textile SMEs in Peru

Abstract

The textile sector has a large share in the Peruvian manufacturing industry, dominated by SMEs. However, the segment has been facing a slowdown in growth, intensified by the partial inoperability of commercial enterprises. Under this scenario, there is a need to improve its competitiveness by optimizing the material supply process, as this is the stage that generates a large number of non-conforming orders and delays in the entry of production. Therefore, an optimize model using Just-In-Time and Lean Warehouse has been proposed to reduce backorders, shorten delivery times and minimize the input of defective materials. Along with 5S methodology to organize the warehouse and supplier assessment, ensured a long lasting solution. After the simulation made by the software Arena with the proposed model, it was possible to reduce the number of non-optimal orders by 55% and increase process efficiency by 5.97% by reducing procurement lead time. Furthermore, it represents a reduction in the purchasing cost of 40.55%.