Search results

1 – 10 of over 38000
To view the access options for this content please click here
Article
Publication date: 7 October 2021

Jingbin Wang, Kexin Hou and Xuechang Zhu

The purpose of this study is to demonstrate the nonlinear relationship between inventory stickiness and productivity, with investment efficiency being a mediator and…

Downloads
17

Abstract

Purpose

The purpose of this study is to demonstrate the nonlinear relationship between inventory stickiness and productivity, with investment efficiency being a mediator and environmental dynamism being a moderator.

Design/methodology/approach

Using a large panel data collected from 1,479 Chinese listed manufacturing enterprises over the period from 2010 to 2020, this research employs the instrumental variable method combined with two-stage least squares estimators to explore the inverted-U-shaped relationship between inventory stickiness and productivity. Furthermore, the mediating role of investment efficiency and the moderating role of environmental dynamism are demonstrated via two three-model systems.

Findings

As its core, productivity initially increases with inventory stickiness until a turning point at the end of the sample, beyond which the incremental effect of inventory stickiness on productivity become negative. That is, an inverted U-shaped relationship between inventory stickiness and productivity is found to exist. Moreover, further mediated moderation analysis highlights that investment efficiency is a key mediator of this relationship, whereas environmental dynamism is a key moderator.

Practical implications

Managers ought to gauge carefully against the tradeoffs between inventory stickiness and productivity. In general, over 90% of manufacturing enterprises have great potential to increase productivity by implementing sticky inventory management. In addition, managers are suggested to place emphasis on investment management and environmental strategy.

Originality/value

This paper contributes to the current understanding about productivity by illustrating and verifying the nonlinear effect of sticky inventory management. It may be the first study to empirically demonstrate the mediating effect of investment efficiency and the moderating effect of environmental dynamism on the relationship between inventory stickiness and productivity.

Details

Journal of Manufacturing Technology Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-038X

Keywords

To view the access options for this content please click here
Article
Publication date: 21 September 2021

S. Yamini and M.S. Gajanand

The paper provides a comprehensive overview of the biases in inventory decisions, under the umbrella of behavioural operations, considering research findings that used…

Abstract

Purpose

The paper provides a comprehensive overview of the biases in inventory decisions, under the umbrella of behavioural operations, considering research findings that used experimental methods. Research in this field has gained traction but, to the best of our knowledge, review articles that summarize these research findings are scarce. Hence, there is a need to synthesize the anomalies and biases reported in inventory decision-making literature to gain a more integrated understanding.

Design/methodology/approach

This study reviews themes relevant to inventory and behavioural operations management from the articles published in recognized top-tier journals during the period between 2000 and 2020 with an aim to build a classification framework. Further, using a systematic review procedure, the relevant research studies are divided into sub-sections and appropriate search strategies are adopted to pleat more information on inventory ordering biases.

Findings

This study presents a classification framework by highlighting the factors influencing the biases in inventory decisions and describes the effects of utility preferences on the decision-making behaviour. It highlights the inventory ordering pattern under unconventional settings and also for different supply chain settings. This systematic review helps in identifying the research gap and in giving directions for future researchers.

Originality/value

The study presents a systematic review and detailed analysis of the research in inventory decision making through a behavioural lens. The study shows a clear direction of progress over the years, and implies new directions for looking beyond placing orders and for moving towards a more integrated approach while making supply chain decisions. It will be useful for researchers and practitioners working on newsvendor decisions, supply chain contracts, behavioural economics, behavioural operations management, bounded rationality theory and experimental economics.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

To view the access options for this content please click here
Article
Publication date: 30 September 2013

Pu Liu and Yingying Shao

The purpose of this paper is to empirically examine the relationship between firms' inventory accumulation and financial structure. It further investigates the impact of…

Downloads
1746

Abstract

Purpose

The purpose of this paper is to empirically examine the relationship between firms' inventory accumulation and financial structure. It further investigates the impact of geographical locations on firms' inventory investment decision after controlling for firms' financial structure.

Design/methodology/approach

This paper uses a large panel of over 1,400 Chinese listed firms that issued.

Findings

Firms' financial structure, as reflected in the availability of internal and external capital, has significant impact on firms' inventory decisions. In addition, it is found that firms headquartered in major economic development areas (EDA) tend to have slower inventory growth than firms located in rural areas. Moreover, the results reveal that locating in major EDA facilitates firms' stockpiling of inventories through easy access to external capital.

Originality/value

This study not only contributes to the studies on the interactions between firms' location and their financing and investment policy, but also improves our understanding about emerging markets such as China.

Details

Studies in Economics and Finance, vol. 30 no. 4
Type: Research Article
ISSN: 1086-7376

Keywords

To view the access options for this content please click here
Article
Publication date: 1 March 1999

Don P. Holdren and Craig A. Hollingshead

Integrates inventory control issues with corporate financial management and commercial lending practices. The first part of the paper considers inventory management…

Downloads
2633

Abstract

Integrates inventory control issues with corporate financial management and commercial lending practices. The first part of the paper considers inventory management techniques used by inventory holding businesses, then explains how inventory segmentation techniques may be used by financial credit managers. Suggests ways inventory management influences the cost of working capital to businesses. Commercial loan officers can use this information to adopt a market‐based lending strategy that segments inventory and closely matches inventory loan risks and return.

Details

Journal of Business & Industrial Marketing, vol. 14 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

To view the access options for this content please click here
Article
Publication date: 1 June 1991

M. Tawfik Mady

Both inventory investments and structure in a sample of 44manufacturing companies representing five industry groups in Egypt areinvestigated. The study reveals that the…

Abstract

Both inventory investments and structure in a sample of 44 manufacturing companies representing five industry groups in Egypt are investigated. The study reveals that the type of industry is a determinant factor of both the Inventory to total Assets Ratio (AIR) and the inventory structure at the firm level. AIR indicates significant positive correlation with the Materials Cost Ratio (MCR), the Finished Product inventory Ratio (FPR), and the “Others” Inventory Ratio (OTR), but a negative correlation with the Raw Materials inventory Ratio (RMR). The study shows that raw materials and purchased components deserve the most attention in Egyptian industry. The study also shows a negative correlation between RMR and the company′s Value Added (VAD). With more vertical integration a firm can reduce its RMR. The study confirms the effect of the type of production‐inventory system on the company′s Work‐in‐Process inventory Requirements (WPR). WPR was relatively low in both the engineering and food groups.

Details

International Journal of Operations & Production Management, vol. 11 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

To view the access options for this content please click here
Article
Publication date: 22 April 1989

Carol Lee Stamm, Damodar Y. Golhar and Wayland P. Smith

Inventory control practices in medium‐sized midwestern manufacturing firms (75 to 500 employees) were investigated. Items concerning inventory model used, shortages…

Downloads
1488

Abstract

Inventory control practices in medium‐sized midwestern manufacturing firms (75 to 500 employees) were investigated. Items concerning inventory model used, shortages, number of suppliers and quality assurance were included in the survey. The total number of respondents was 212 (a 54 percent response rate). Our findings identify MRP as a widely used model at present, and MRP and JIT as the inventory models of choice for the future. These findings dictate appropriate educational emphasison MRP and JIT inventory models for both students and practitioners.

Details

American Journal of Business, vol. 4 no. 1
Type: Research Article
ISSN: 1935-5181

Keywords

To view the access options for this content please click here
Article
Publication date: 1 August 2001

Seyed‐Mahmoud Aghazadeh

The inventory management system of a discount retail store was examined. A just‐in‐time inventory management model and a quantity discount model were used to determine the…

Downloads
6043

Abstract

The inventory management system of a discount retail store was examined. A just‐in‐time inventory management model and a quantity discount model were used to determine the appropriateness of each model for the retail outlet. Based on the calculations performed, it was determined that utilizing a retail just‐in‐time (JIT) policy is unrealistic. Customer demands constantly change, and shortages due to stock‐outs can cause huge losses in profits, especially when customers are lost to competitors. Additionally, the quantity discount model provides the lowest total cost for a retail outlet. Not only are the prices cheaper when inventory is bought in large quantities, but shortages or stock‐outs are rare. The optimal solution for a retail store is implementing the quantity discount method.

Details

Logistics Information Management, vol. 14 no. 3
Type: Research Article
ISSN: 0957-6053

Keywords

To view the access options for this content please click here
Article
Publication date: 1 January 1978

Michael Schiff

A recent article by Bartels presents a theoretic discussion of the need for avoiding the fragmentation of marketing and distribution. What follows is a rationalisation and…

Abstract

A recent article by Bartels presents a theoretic discussion of the need for avoiding the fragmentation of marketing and distribution. What follows is a rationalisation and description of a practical approach to an associating of inventory carrying costs with the field sales organisation within marketing thus closing the loop between marketing and physical distribution. The integration of inventory control and marketing, a phase of bringing marketing and physical distribution together, can be viewed as a problem of overall management. Top corporate executives have in recent years stressed the importance of cash flow management to all levels of management, not merely financial managers. A frequently mentioned, obvious variable in improving cash flow is improved inventory control interpreted to mean reduced inventory levels to meet given service levels, thus releasing cash for other uses. To achieve this objective of improved inventory control, one needs to involve decision makers affecting the levels of inventory, specifically the field sales organisation.

Details

International Journal of Physical Distribution & Materials Management, vol. 8 no. 4
Type: Research Article
ISSN: 0269-8218

To view the access options for this content please click here
Article
Publication date: 1 March 1990

M. Tawfik Mady

The inventory performance in industry in Egypt over a six‐yearperiod for a sample of 44 manufacturing companies representing fiveindustry groups is analysed. This will…

Abstract

The inventory performance in industry in Egypt over a six‐year period for a sample of 44 manufacturing companies representing five industry groups is analysed. This will help in highlighting areas of opportunity to improve inventory management in the industrial public enterprises (IPEs) with an ultimate goal of increasing profitability and productivity. The conventional inventory turnover ratio (ITR) and the value added inventory turnover rate (ITR2) were used as measures of inventory performance in this study. Kruskal‐Wallis H‐Test was utilised to compare the different industry group means. An effort was also made to identify some independent variables that might have an effect on inventory performance at the company level. This study revealed that type of industry is a determinant factor of the achieved ITR at the firm level. When compared with some industrial nations, it was clear that manufacturing companies in Egypt were suffering from a relatively low ITR, and a very low ITR2. Another important finding of this study is that ITR2 was always significantly correlated with the return on investment ratio at the company level. This finding shows the significant role that the inventory management function could play in improving profitability and productivity in the industrial public enterprises in the country.

Details

Industrial Management & Data Systems, vol. 90 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

To view the access options for this content please click here
Article
Publication date: 1 September 1990

Thomas C. Harrington, Douglas M. Lambert and Monica P. Vance

Inventory control problems often result in recordand physical count discrepancies which mayultimately lead to higher than preferred inventorylevels. Conversely, accurate…

Downloads
3171

Abstract

Inventory control problems often result in record and physical count discrepancies which may ultimately lead to higher than preferred inventory levels. Conversely, accurate inventory records result in lower inventory investment and are the foundation for forecasting, ordering, tracking, vendor evaluation, and dead stock administration programmes. Guidelines, based on general systems theory, to identify the presence of inventory control problems in both physical operations and information systems areas are presented. Next, procedures to correct control problems are discussed. These include the formation of a permanent taskforce, corporate‐wide education on the importance of record accuracy, and the development of a general management plan based on sound principles for effective inventory control. Recent experiences within a telecommunications company having inventory control problems are used as a case example to illustrate specific points.

Details

International Journal of Physical Distribution & Logistics Management, vol. 20 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

1 – 10 of over 38000