Ensuring stock availability of raw material in inventory so that production process do not face any disruption at Anwar Group of Industries

Abstract

Anwar Group of Industries, a pioneer in building materials manufacturing in Bangladesh, has diversified its product offerings to target consumers across various segments of society. This requires solid demand forecasting, as effective forecasting will facilitate better product allocation. This paper aims to identify an effective process for ensuring raw materials in inventory so that production does not face disruptions, considering factors such as product proliferation, volatility, customer demand, and stockout/overstock situations. A mock simulation and analysis will determine the effectiveness of the suggested approach. The report addresses several aspects of ensuring raw materials in inventory and preventing production disruptions, highlighting some challenges and best practices. It outlines optimization problems and simulation approaches, emphasizing the importance of forecasting for those in charge of supply chain management. This relates to the notion that "Anwar Group is now in a strong position to allocate products more effectively" due to the availability of more reliable demand data and the absence of inventory issues. To improve processes, better collaboration with the production department is needed to ensure wider access to production volume data. Additionally, establishing a forecasting department and enhancing the quality control over the availability of historical data may be beneficial. Most importantly, this paper demonstrates that certain systems can be utilized to make the forecasting process as effective as possible when managing inventory allocation in relation to demand and supply chains.