Application of Lean Logistics Framework to Enhance Inventory System Efficiency in SMEs
DOI:
https://doi.org/10.35870/ijmsit.v6i2.8533Keywords:
Lean Logistics, Lean Six Sigma, DMAIC, Inventory Management, Small and Medium Enterprises (SMEs)Abstract
Managing inventory effectively remains a significant challenge for Small and Medium Enterprises (SMEs), especially when processes for recording, storing, and procuring lack a structured control system. Such deficiencies can result in mismatches between physical stock and administrative records, prolonged product search times, and inaccuracies in identifying purchasing needs. This study investigates the implementation of a Lean Logistics framework rooted in Lean Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control) to enhance inventory efficiency in SMEs. Utilizing a descriptive analytical approach, data were gathered through observations of procurement activities, goods receipt, storage, stock recording, product distribution, interviews with owners and employees, and inventory documentation. Performance metrics included Inventory Turnover (IT), Inventory Record Accuracy (IRA), Mean Absolute Percentage Error (MAPE), and Lead Time. Results indicate that adopting Lean Logistics practices, such as 5S, Kanban, demand forecasting, and inventory control, led to notable improvements. Inventory Turnover rose from 2.18 to 4.35 times per year, IRA increased from 79.5% to 95.8%, MAPE decreased from 23.8% to 8.9%, and Lead Time was reduced from 5 days to 2 days.
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