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Article
Publication date: 1 January 1984

Norman Gaither and Donald R. Fraser

Five hundred financial executives from North American companies were surveyed by means of a mailed questionnaire to gain a view from outside the operations functions of…

Abstract

Five hundred financial executives from North American companies were surveyed by means of a mailed questionnaire to gain a view from outside the operations functions of the basis on which aggregate inventory decisions are taken. The response indicated that more functions than might have been expected were involved in the process of determining inventory levels and, partly because of this, policy tended to be of a shorter rather than longer term nature.

Details

International Journal of Operations & Production Management, vol. 4 no. 1
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 June 1988

Jossef Perl and Sompong Sirisoponsilp

An integrated model for distribution network design is proposed which explicitly represents the required level of customer service.

Abstract

An integrated model for distribution network design is proposed which explicitly represents the required level of customer service.

Details

International Journal of Physical Distribution & Materials Management, vol. 18 no. 6
Type: Research Article
ISSN: 0269-8218

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Article
Publication date: 2 June 2020

H. Niles Perera, Behnam Fahimnia and Travis Tokar

The success of a supply chain is highly reliant on effective inventory and ordering decisions. This paper systematically reviews and analyzes the literature on inventory

Abstract

Purpose

The success of a supply chain is highly reliant on effective inventory and ordering decisions. This paper systematically reviews and analyzes the literature on inventory ordering decisions conducted using behavioral experiments to inform the state-of-the-art.

Design/methodology/approach

This paper presents the first systematic review of this literature. We systematically identify a body of 101 papers from an initial pool of over 12,000.

Findings

Extant literature and industry observations posit that decision makers often deviate from optimal ordering behavior prescribed by the quantitative models. Such deviations are often accompanied by excessive inventory costs and/or lost sales. Understanding how humans make inventory decisions is paramount to minimize the associated consequences. To address this, the field of behavioral operations management has produced a rich body of research on inventory decision-making using behavioral experiments. Our analysis identifies primary research clusters, summarizes key learnings and highlights opportunities for future research in this critical decision-making area.

Practical implications

The findings will have a significant impact on future research on behavioral inventory ordering decisions while informing practitioners to reach better ordering decisions.

Originality/value

Previous systematic reviews have explored behavioral operations broadly or its subdisciplines such as judgmental forecasting. This paper presents a systematic review that specifically investigates the state-of-the-art of inventory ordering decisions using behavioral experiments.

Details

International Journal of Operations & Production Management, vol. 40 no. 7/8
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 July 2004

Peter F. Wanke and Walter Zinn

Logisticians must make strategic level decisions in order to manage uncertainty, customer service and cost. This research explores the relationships between three…

Abstract

Logisticians must make strategic level decisions in order to manage uncertainty, customer service and cost. This research explores the relationships between three strategic level decisions and selected product, operational and demand variables. The three strategic decisions are: make to order vs make to stock; push vs pull inventory deployment; and inventory centralization vs decentralization. The data used to study the relationships were collected in an international environment and analyzed with correlation analysis and logistic regression. Results suggest that the three strategic decisions are each explained by specific product, operational and demand variables.

Details

International Journal of Physical Distribution & Logistics Management, vol. 34 no. 6
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 17 April 2009

Rohit Bhatnagar and Chee‐Chong Teo

The purpose of this paper is to describe the issues, tradeoffs, and models relating to two important sets of problems that arise in supply chain management – complexities…

Abstract

Purpose

The purpose of this paper is to describe the issues, tradeoffs, and models relating to two important sets of problems that arise in supply chain management – complexities in extended supply chains and network coordination in globally dispersed supply chains. This paper highlights the role of logistics in enhancing the competitiveness of firms that operate a global supply chain.

Design/methodology/approach

The methodology used in this paper encompasses conceptual research and detailed literature review of key issues.

Findings

This review indicates that the key challenges faced by supply chain managers due to extended supply chains are non‐stationary demand, variability propagation, and inventory imbalances. For network coordination managers must determine the role of facilities in a global network, identify the optimal location and capacity of facilities as well as role of consolidation hubs. For the above challenges, the tradeoffs in terms of four key drivers of supply chain performance – transportation, inventory, information, and facilities and relate these to key measures of supply chain performance are described. Important directions for future research are also identified.

Research limitations/implications

Test cases are needed to validate and refine the framework presented. Developing case studies that gather appropriate data to test out the models described would be important.

Practical implications

Companies with a global supply chain as well as third party logistics companies will find the framework presented in this paper very useful.

Originality/value

A new integrated framework that incorporates key decision issues like complexities of extended supply chains and network coordination into the firm's decision making has been presented. This has not been reported in previous research.

Details

International Journal of Physical Distribution & Logistics Management, vol. 39 no. 3
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 1 January 2006

Cynthia Wallin, M. Johnny Rungtusanatham and Elliot Rabinovich

How should a firm decide which of four choices – i.e. inventory speculation, inventory postponement, inventory consignment, and reverse inventory consignment – is most…

Abstract

Purpose

How should a firm decide which of four choices – i.e. inventory speculation, inventory postponement, inventory consignment, and reverse inventory consignment – is most appropriate to adopt for a given purchased item in a particular context? This paper seeks to identify and explain the critical factors that drive this decision.

Design/methodology/approach

By conducting a review of relevant literature and deriving anecdotal observations from four case studies.

Findings

This decision is influenced by three factors – customer demand or usage requirements, nature of the supply line and bargaining power of a firm relative to the supplier.

Research limitations/implications

From the perspective of science, the conduct of both empirical research to augment the reported anecdotal evidence and conceptual research along a number of directions (e.g. to juxtapose the research findings in existing theories, to examine variations of the four “pure” inventory management approaches, or to consider the vantage point of the supplying firm rather than that of the buying firm) is encouraged.

Practical implications

As for the perspective of practice, the critical factors serve as the basis for the articulation of a decision framework – one that should help firms not only pin‐point the most relevant issues concerning a particular purchased item but also to avoid the costly mistake of selecting a less‐than‐ideal inventory management approach.

Originality/value

These critical factors, along with the proposed decision framework, extend prior research which has focused only on choosing between the inventory speculation approach and the inventory postponement approach.

Details

International Journal of Operations & Production Management, vol. 26 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

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Article
Publication date: 20 May 2011

Emmett J. Lodree

Planning inventories for emergency supplies such as bottled water, non‐perishable foods, batteries, and flashlights can be challenging for retailers situated within the…

Abstract

Purpose

Planning inventories for emergency supplies such as bottled water, non‐perishable foods, batteries, and flashlights can be challenging for retailers situated within the projected path of a severe storm. The retailer's inventory decisions are complicated by the inherent volatility of storm forecasts and the corresponding demand predictions. The purpose of this paper is to explore both proactive and reactive inventory control policies within the context of probable pre‐storm demand surge for a fast‐moving emergency supply item, and identify the conditions that are most conducive to each strategy according to the minimax decision criterion.

Design/methodology/approach

The inventory system is formulated based on an underlying economic order quantity framework. Minimax decision rules are developed analytically. Sensitivity analysis is facilitated by both analytic and numerical methods.

Findings

The conditions that are conducive to a proactive ordering strategy are limited supplier flexibility, acute demand surge, and exorbitant reorder costs; otherwise, the minimax inventory control policy is given by a reactive ordering strategy.

Research limitations/implications

The above‐mentioned findings are based on a stylized inventory model characterized by assumptions that are consistent with the academic literature. In order to assess the implications of these results in practice, the model should be extended according to the relevance of each assumption to specific real‐world inventory systems.

Social implications

Householders preparing for probable evacuation or post‐storm power outages typically overwhelm grocery and home improvement stores during a brief period prior to the impact of an approaching weather system. This phenomenon triggers a temporary spike in demand for several stock keeping units, which is oftentimes accompanied by pervasive inventory shortages that proliferate community vulnerability and engender a sense of disarray throughout the local populace. Effective inventory management of emergency supply items during this period can help alleviate some of these social dilemmas.

Originality/value

Few academic publications address inventory management from the perspective of humanitarian relief. Among existing studies, the emphasis has been coordination of emergency supplies for post‐disaster relief and recovery activities. This paper appears to be the first academic investigation of an inventory system driven by the pre‐storm demand surge for emergency supplies that typically occurs in the presence of an ominous and potentially devastating weather system. Additionally, this study conceivably represents the first minimax distribution free approach to inventory control within the context of humanitarian logistics and disruption management.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 1 no. 1
Type: Research Article
ISSN: 2042-6747

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Article
Publication date: 12 February 2018

Syed Asif Raza and Mohd. Nishat Faisal

This paper aims to develop efficient decision support tools for a firm’s environment protection by using greening effort while yet improving profitability by utilizing…

Abstract

Purpose

This paper aims to develop efficient decision support tools for a firm’s environment protection by using greening effort while yet improving profitability by utilizing pricing and inventory decisions with discount consideration.

Design/methodology/approach

This study proposed a mathematical model for price- and greening effort-dependent demand rate with discount considerations. Later, the mathematical model is extended to the situation in which the demand rate is also dependent on the stock level, in addition to the price and greening effort. Efficient solution methodologies are developed for finding the optimal solution to the proposed models.

Findings

Simple yet elegant models are proposed to mimic real-life applications. Structural properties of the models are explored to outline efficient algorithms with quantity discounts.

Research limitations/implications

The paper considers monopoly and assumes deterministic demand. Only a more commonly observed all-units discount scheme is studied.

Practical implications

The models provide decision support tools for firms in pursuit of joint profit maximization and environment consciousness goals.

Social implications

The study develops environment-friendly approaches for inventory management and improving the profitability alike.

Originality/value

This study is among the first to consider environmental protection with an investment in greening effort along with inventory management and pricing decision. The study also explored the effect of all-unit quantity discounts.

Details

Journal of Modelling in Management, vol. 13 no. 1
Type: Research Article
ISSN: 1746-5664

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Article
Publication date: 1 August 1996

Martin Verwijmeren, Piet van der Vlist and Karel van Donselaar

Aims to explain the driving forces for networked inventory management. Discusses major developments with respect to customer requirements, networked organizations and…

Abstract

Aims to explain the driving forces for networked inventory management. Discusses major developments with respect to customer requirements, networked organizations and networked inventory management. Presents high level specifications of networked inventory management information systems (NIMISs). Reviews some decision systems for inventory management, and compares traditional inventory management to networked inventory management. Uses these insights to outline NIMISs for several types of inventory management decision systems. Summarizes the results of the study, and provides an outlook on further research.

Details

International Journal of Physical Distribution & Logistics Management, vol. 26 no. 6
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 1 February 2021

Kai Leung Yung, George To Sum Ho, Yuk Ming Tang and Wai Hung Ip

This project attempts to present a space component inventory classification system for space inventory replenishment and management. The authors propose to adopt a…

Abstract

Purpose

This project attempts to present a space component inventory classification system for space inventory replenishment and management. The authors propose to adopt a classification system that can incorporate all the different variables in a multi-criteria configuration. Fuzzy logic is applied as an effective way for formulating classification problems in space inventory replenishment.

Design/methodology/approach

A fuzzy-based approach with ABC classification is proposed to incorporate all the different variables in a multi-criteria configuration. Fuzzy logic is applied as an effective way for formulating classification problems in space inventory replenishment of the soil preparation system (SOPSYS) which is used in grinding and sifting Phobos rocks to sub-millimeter size in the Phobos-Grunt space mission. An information system was developed using the existing platform and was used to support the key aspects in performing inventory classification and purchasing optimization.

Findings

The proposed classification system was found to be able to classify the inventory and optimize the purchasing decision efficiency. Based on the information provided from the system, implementation plans for the SOPSYS project and related space projects can be proposed.

Research limitations/implications

The paper addresses one of the main difficulties in handling qualitative or quantitative classification criteria. The model can be implemented using mathematical calculation tools and integrated into the existing inventory management system. The proposed model has important implications in optimizing the purchasing decisions to shorten the research and development of other space instruments in space missions.

Originality/value

Inventory management in the manufacture of space instruments is one of the major problems due to the complexity of the manufacturing process and the large variety of items. The classification system can optimize purchasing decision-making in the inventory management process. It is also designed to be flexible and can be implemented for the manufacture of other space mission instruments.

Details

Industrial Management & Data Systems, vol. 121 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

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