International Journal of Management, IT and Engineering
Year : 2019, Volume : 9, Issue : 4
First page : ( 105) Last page : ( 114)
Online ISSN : 2249-0558.

Inventory management-A case study of oil and gas exploration service provider company

Vaghasiya Suresh R.

Prodcution Engineering Department, Government Engineering College, Bhavnagar

Online published on 24 October, 2019.

Abstract

The upstream oil and gas exploration service providers need keep inventory of the equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells. This will lead to high inventory levels and blocked working capital of the company. This case describes the Asset/Inventory function of the oil and gas service provider the company and the concepts get rid of redundant and excessive inventory. It also describes some of the inventory classification tools to optimize the inventory. Inventory Optimization through Classification describes the various dimensions of inventory and different analysis tools for classifying inventory. The report discussed about the ABC, FSN, and HML analysis done on about 5600 items from three branch plant of the company. Last six months transaction data were collected from three branch plant warehouses. The new method to Re-Classify of these items in three different categories (Very Important, Important, and Less Important) by combining ABC, FSN, and HML analysis were proposed.

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Keywords

Inventory, ABC Analysis, Oil and Gas, Virtual Warehouse, ERP System.

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