The effect of production costs on the provisioning management of materials: evidence from paper industry in Peru

Abstract

This paper presents an empirical investigation to evaluate the impact of purchase, storage and inventory management on the production costs of materials supply management in the Peruvian paper industry. A linear regression model was used under the ordinary least squares method to determine the causal relationship between the provisioning of materials and production costs. It was concluded that the evaluation of the effect between the study variables was inversely proportional, that is, as the management of purchase, storage, and inventory in companies improve, the production costs may also be reduced.