(Wallace Wheeler, 1992)
The procurement of raw materials for manufacturing is a critical function because any shortage of materials can lead
to a partial or complete production shutdown. Conversely, excessive material stock involves unnecessary costs
related to maintaining large inventories. The optimal solution to this dilemma is to keep inventory costs at a
minimum while avoiding costly stock-outs. This study focuses on the purchasing department of the Texacone
Company of Mesquite, Texas and specifically on raw material procurement. It will assist in providing an increase in
control and effectiveness of the inventory while streamlining costs using an inventory modeling system.