Least Squares Method and Empirical Modeling: A Case Study in a Mexican Manufacturing Firm

Empirical modeling (EM) has been a useful approach for the analysis of different problems across a number of areas/fields of knowledge. As is known, this type of modeling is particularly helpful when parametric models due to a number of reasons cannot be constructed. Based on different methodologies and approaches (e.g., Least Squares Method, LSM), EM allows the analyst to obtain an initial understanding of the relationships that exists among the different variables that belong to a particular system or a process

Determinación del Costo del Inventario con el Método Híbrido

The purpose of this work is to launch a technique to calculate inventory cost that is named Hybrid method, that is a combination of other techniques and is applied to estimate how much and when to make a new order. Afterwards, with an illustrative case sensitivity analysis is done to determine which variables have influence on inventory cost. The volume discounts offered by supplier and the stock out cost are the variables with greater impact, which has taken the order quantity and the reorder point to their maximum values, to take advantage of volume discounts offered by supplier and for protecting against possible shortage of goods.El objetivo de este trabajo es presentar una técnica para estimar el costo del inventario denominada método Híbrido, que es una combinación de otras y se aplica para determinar cuánto y cuándo hacer un nuevo pedido. Luego con un caso ilustrativo se hace análisis de sensibilidad para determinar qué variables influyen en el costo del inventario. Los descuentos por volumen que ofrece el proveedor y el costo de cada faltante son las variables que tienen mayor impacto, lo que ha llevado la cantidad de pedido y el punto de renovación del pedido a sus valores máximos, a fin de aprovechar los descuentos ofrecidos por el proveedor y protegerse contra eventuales agotamientos de los artículos