Establishment of supply points with entry frequency lower than inventory exit frequency in coffee exporting companies (#1887)

Authors

Alonzo, Alberto

Vasquez, Oscar Orlando

Perdomo, Maria Elena

Dore-Rivera, Edwin

Abstract

The coffee industry, recognized as one of the most widely consumed products both nationally and internationally, has positioned Honduras as the sixth largest coffee producer and exporter worldwide, holding a 4% share of the global production, which is dominated by countries like Brazil, Vietnam, Colombia, Indonesia, and Ethiopia. Within the North, Central America, and Caribbean Coffee Production group, Honduras leads with a 31% share. According to the statistical report from the Honduran Coffee Institute (IHCAFE), global coffee exports for the 2020-2021 harvest reached 168.17 million 46 kg bags, marking a 2.05% increase compared to the 2019-2020 harvest, which recorded 166.12 million 46 kg bags. This research focused on identifying and defining a method for projecting inventories within coffee exporting companies. The methodology involved collecting information on inventory management methods used in other countries, with the goal of selecting the most frequently employed method for implementation. This chosen method provides crucial data on optimal inventory quantities, total inventory costs, frequency, period, and reorder points for coffee. The results yielded accurate projections of inventory, considering economic factors, time periods, and weight units. This project not only describes the identified method but also assists in establishing specific values and factors that are critical to the operations of coffee exporting companies.