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1 – 10 of over 45000Samayita Guha, Arun Upadhyay and Manjul Gupta
In spite of the fact that today’s supply chains are global, it is surprising the current research lacks studies primarily focusing on Latin American (LATAM) firms. To enhance our…
Abstract
Purpose
In spite of the fact that today’s supply chains are global, it is surprising the current research lacks studies primarily focusing on Latin American (LATAM) firms. To enhance our understanding in this domain, this study examines the impact of technology investments on inventory turnover, asset turnover and employee productivity measures within the LATAM context.
Design/methodology/approach
We use an unbalanced panel of over 2,101 firm-year observations from the Worldscope database between 2010 and 2022 and limit our analysis to firms located in the Latin American region. We use panel data and regression analysis to test our hypotheses.
Findings
The findings reveal a positive impact of technology investments on inventory turnover, asset turnover and employee productivity.
Originality/value
There is a dearth of research in the discipline primarily focusing on the firms from the LATAM region. The extant literature has largely focused on the Western firms and we know from prior cross-cultural research that there are significant differences in terms of how firms and governments operate differently in emerging and non-Western regions such as LATAM or parts of Asia and Africa. By specifically focusing on a sample of LATAM firms, the study makes important contributions to the extant literature with respect to the role of technology investments in improving inventory turnover, and also on asset turnover and employee productivity. The study further provides implications for practice.
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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…
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.
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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 techniques…
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.
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Both inventory investments and structure in a sample of 44manufacturing companies representing five industry groups in Egypt areinvestigated. The study reveals that the type of…
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.
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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, number of…
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.
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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…
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.
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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.
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 help in…
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.
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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 inventory…
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.
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This article examines inventory control problems in developing countries using the results of a field study conducted in the industrial sector of a developing country. It is shown…
Abstract
This article examines inventory control problems in developing countries using the results of a field study conducted in the industrial sector of a developing country. It is shown that ineffective inventory control is a major problem faced by industries in developing countries and that even the very basic inventory control concepts and techniques are not used by the majority of the companies studied. Due to the heavy reliance on imported industrial raw materials and parts, and the endemic bureaucratic delays and associated communication problems in developing countries, order lead times cannot be computed with any degree of accuracy. Therefore manufacturers attempt to overcome the uncertainty by carrying excessive amounts of buffer stocks.
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