An Inventory Model Application with Periodic Review for the Manufacture of Distribution Transformers

The paper proposes an Inventory Application Model with a periodic review under the policy (R, S), where the demand is not constant and varies widely. A proposed model with the historical critical materials used in the manufacture of low voltage windings of distribution transformers was proposed and implemented for the com- pany studied by decreasing the inventory shortage. We found that the inventory holding costs for minimum levels of service was approximately 90% for each of the critical items. During the year the model was applied, penalty fine payments were reduced from $831,850 to $133,350 mx.