Lean Warehousing philosophy to increase the level of service in a Peruvian MSE in the automotive sector (#2056)

Authors

Ore-Tinco, Steve

Ponce-Loyola, Ana-Rosa

Altamirano-Flores, Ernesto

Chavez, Heyul

Abstract

The automotive industry in Peru is experiencing sustained growth, presenting a significant opportunity to implement Lean philosophy principles alongside advanced inventory management practices to improve operational efficiency. A critical challenge faced by organizations is the low order service level, which is primarily caused by inaccurate demand forecasting, poor time management, stock-outs, and inefficient warehouse distribution. This study focuses on high-demand products, such as shock absorbers, terminals, springs, and trapezoids, which currently have an average service level of 81.10%. This issue is particularly important as low service levels often lead to delivery failures, resulting in lost sales and reduced profitability. The objective of this research is to propose strategies based on Lean Warehousing, including Business Process Management (BPM), Economic Order Quantity (EOQ), and Demand Forecasting. In addition, the study will apply the Kaizen approach to improve the service level by at least 10%, targeting the root causes of the identified problems to drive more efficient and profitable operations.