An application of inventory optimization decisions among SMES in auto sector using FCM and AHP techniques

Abstract

Small and medium Enterprises (SMEs) in auto component manufacturing industry is playing a key role in the automobile manufacturing sector. The smooth supply of auto components to automobile assembling companies is possible only when there is a proper co-ordination and operational control of the component manufacturing and supply of basic raw materials required for auto component manufacturing. The nature of raw materials used in the process is wide in range and in terms of nature of the component and its value. The short supply can also be observed in many components. Some components require a special material or the skill and the process technologies. These elements are not considered while making inventory decisions by the bottom and middle level managers while determining the inventory decisions using either deterministic or probabilistic and stochastic models. The primary consideration is given to demand and supply in terms of quantity. It means to say that qualitative factors are not considered while making an inventory decision by the middle level management. But the final inventory decision will be taken on the basis of some qualitative factors consideration by the top management and implemented from time to time. Hence, the present study is focused in identifying the what qualitative factors are considered by the top management while taking inventory decisions among the SMEs in auto component manufacturing industry in the auto hub state of Tamilnadu and with special reference to Chennai region.