Dynaplas Ltd, located in Scarborough, Ontario, is a plastics injection moulding company, which produces automotive components using engineered resins. The Engineering Department designs and builds injection moulds and tools for both internal use and commercial distribution. Dynaplas automotive products include pulleys, connectors, seals, fuel systems, brake parts, and insert bearings. Recently, as part of a continuous improvement effort, Dynaplas examined trends in its customer orders over the last couple of years. They found that, on some occasions, parts were shipped out late and/or in poor condition, resulting in unnecessary and unforeseen costs. Therefore, the Engineering Department launched a project to develop an optimal inventory level prediction model, to ensure that every Dynaplas product is available in sufficient stock to guarantee customers receive quality parts, on time. To begin, all factors involved in developing the prediction model and user interface had to be identified.
Megan Maguire, a University of Waterloo co-op student, was asked to develop an optimal inventory level prediction model. Her specific tasks include examining the steps required to develop a mathematical model and building a user interface to help implement the application.
The teaching objective of this case is to illustrate the application of Economic Order Quantity (EOQ) models to optimize inventory control using a quantitative approach. Therefore, the main expected learning outcome is for students to gain a firm grasp of mathematical modelling and formulations, and output analysis along with project management concepts. This case can serve as complementary material in Operations Planning and Inventory Control (MSCI 332) and Production and Service Operations Management (MSCI 432) courses.