Modeling Inventory Management Processes For Improving Facility Maintenance Operations

open_access
Open Access
Author:
Runyon, Madelyn
Area of Honors:
Industrial Engineering
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Vittaldas V Prabhu, Thesis Supervisor
Catherine Harmonosky, Thesis Honors Advisor
Keywords:
inventory management
supply chain optimization
material flow efficiency
cost reduction
facility maintenance operations
labor optimization
operational efficiency
Abstract:
Efficient inventory management is critical to optimizing operational workflows and reducing costs in maintenance service environments. This thesis examines potential opportunities in Penn State’s Office of Physical Plant (OPP) material procurement and distribution process, focusing on the Area 3 Service Shop. This study proposes a tiered inventory management approach, based on a forward reserve plan, categorizing items by priority to ensure high-demand materials are readily available while minimizing overstocking of low-priority items. A Just-in-Time (JIT) inventory system is recommended to enhance supply chain efficiency, reduce retrieval times, and optimize storage space. Additionally, this research evaluates the implementation of EveXso, a logistics and supply chain management system, to address visibility gaps and improve material tracking, automated restocking, and demand-driven stocking strategies. By integrating EveXso with existing OPP systems, real-time inventory tracking and predictive analytics could significantly enhance procurement efficiency. The study further explores the cost savings achieved by consolidating warehouse trips and improving material flow. Ultimately, this thesis highlights how strategic inventory management, combined with advanced tracking technology, can streamline Penn State’s OPP operations, increase labor productivity, and enhance overall efficiency in maintenance workflows. The proposed improvements could lead to a productivity improvement that can result in an annual cost savings of $1.7 to $5.7 million. Furthermore, integrating EveXso into Penn State’s OPP operations would modernize inventory management, improve visibility, and create a more cost-effective supply chain.