Economic measuring of losses derived from inventory management at an oil refinery

Abstract

Purpose

The purpose of the present study is to identify and measure economically the losses related to inventory management in an oil refinery.

Design/methodology/approach

An exploratory case study was conducted to search for a better understanding of a phenomenon and its implications.

Findings

The results obtained based on the case study suggest the need to observe this phenomenon in other contexts and take managerial actions that will eliminate waste as one of the forms of generating value for the company. The results were related to each other and to the traditional metrics of inventory management and can be used as a base to improve mathematical and computational models for production planning and scheduling and also performance indicators.

Originality/value

No studies have been found that attempt to measure the economic losses derived from inventory management and their capacity in this environment.

Citation

Machado, M.F., Lacerda, D.P., Morandi, M.I.W.M., Camargo, L.F.R. and Dresch, A. (2021), "Economic measuring of losses derived from inventory management at an oil refinery", International Journal of Productivity and Performance Management, Vol. 70 No. 8, pp. 2182-2206. https://doi.org/10.1108/IJPPM-08-2019-0389