Proposal for cost reduction in MTS-MTO

In a dynamic industry with many items, where fast delivery to the customer is essential, the balance between stock costs and available quantities is crucial. The goal is to reduce these costs and, if possible, improve customer service. Thus, the study aims to develop a more rational approach to the production and storage of items, seeking to reduce stocks, at least for the vast majority, while improving the quality of customer service. A methodology for integrated production and inventory management differentiated by item classes is proposed, using a hybrid logic of make-to-stock (MTS) and make-to-order (MTO) production, as well as a restructuring of the storage area to reduce wasted time and physical load in the handling and transportation of production components. It was concluded that the use of hybrid MTS-MTO production, combined with dynamically updated analysis of the ABC classification of items, is a strategy that tends to reduce stock shortages in relation to sales volume and therefore improve the company's service quality, thus improving customer satisfaction.

Autorentext
Pedro Vilaça is from V. N. de Famalicão, has a master's degree in Industrial Engineering, specializing in Industrial Management, from the University of Minho, and a degree in Computer Engineering from the same university. A production engineer in an SME in the textile sector until 2014, he moved to Stuttgart, where he works in logistics for a multinational retailer in the furniture sector.