scholarly journals ABC Analysis For Inventory Management: Bridging The Gap Between Research And Classroom

2016 ◽  
Vol 9 (1) ◽  
pp. 39-48 ◽  
Author(s):  
Handanhal V. Ravinder ◽  
Ram B. Misra
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Inventory Management ◽  
Operations Management ◽  
Large Body ◽  
Multiple Criteria ◽  
Pareto Principle ◽  
Abc Analysis ◽  
Sole Criterion ◽  
The Right

ABC analysis is a well-established categorization technique based on the Pareto Principle for determining which items should get priority in the management of a company’s inventory.  In discussing this topic, today’s operations management and supply chain textbooks focus on dollar volume as the sole criterion for performing the categorization.  The authors argue that today’s businesses and supply chains operate in a world where the ability to deliver the right products rapidly to very specific markets is key to survival.  With suppliers, intermediaries, and customers all over the globe, and product lives decreasing rapidly, this focus on a single criterion is misplaced.  The large body of research was summarized based on multiple criteria ABC analysis that has accumulated since the 1980s and recommend that textbooks incorporate their key findings and methods into their discussions of this topic.  Suggestions are offered on how this discussion might be structured. 

Vertical Contracts in a Supply Chain and the Bullwhip Effect

2020 ◽  
Author(s):  
Zhan Qu ◽  
Horst Raff
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Operations Management ◽  
Bullwhip Effect ◽  
Price Effect ◽  
Demand Shocks

This paper shows that decentralized supply chains, in which upstream firms use linear wholesale prices, may experience lower upstream production and downstream sales volatility than vertically integrated supply chains and may be less susceptible to the bullwhip effect by which the variance of upstream production exceeds the variance of downstream sales. The reason is that decentralized supply chains exhibit a price effect, whereby upstream producers raise wholesale prices in the case of positive demand shocks and lower wholesale prices in the case of negative demand shocks. Whereas upstream producers benefit from the price effect and, thus, from a dampening of the bullwhip effect, downstream firms may lose, and overall supply chain profit may decrease. This paper was accepted by Vishal Gaur, operations management.

scholarly journals BENEFITS ASSESSMENT OF TRAINING ON SUPPLY CHAIN MANAGEMENT

2015 ◽  
Vol 7 (2) ◽  
Author(s):  
Claudemir L. Tramarico ◽  
Fernando A. S. Marins ◽  
Ligia M. S. Urbina ◽  
Valerio A. P. Salomon
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Inventory Management ◽  
Operations Management ◽  
Evaluation Model ◽  
Core Competencies ◽  
Critical Factor ◽  
Organizational Capability ◽  
Chain Management ◽  
Chemical Company

<p>Supply chain management (SCM) is a critical factor in the current global scenario. This organizational capability has a recent knowledge base, which is being accumulated, validated, and certified by groups like the Association for Operations Management (APICS). Therefore, training in SCM has been growing as one of the most convenient ways of becoming “Certified in Production and Inventory Management” (CPIM) from APICS. Companies all over the world have invested in SCM training; however, some companies have conditioned the continuity of their training programs to the benefits assessment. This paper contributes by proposing an evaluation model for specific program training on SCM. This model was applied in a global chemical company, which allowed capturing its impact on organizational and individual competencies, as well as on the core competencies. The proposed model includes the Analytic Hierarchy Process (AHP) and concepts in the SCM literature. The main result revealed by this research is that an SCM training based on APICS CPIM is really perceived as beneficial, in individual or organizational terms, for a real-world company. Therefore, this company should be confident that its SCM training program is improving and strengthening its core competencies.</p>

Supply chain, geographical indicator and blockchain: provenance model for commodity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohita Gangwar Sharma
Keyword(s):  
Supply Chain ◽  
Institutional Theory ◽  
Supply Chains ◽  
Value Chain ◽  
Value Distribution ◽  
Content Type ◽  
Blockchain Technology ◽  
The Right ◽  
Theory Framework

PurposeMany commodity supply chains suffer from an unfair value distribution across the supply chain like “Coffee Paradox.” This study explores the coffee supply chain to determine how the country of origin–geographical indicator can be used as a method of fair distribution of value and provenance across the supply chain effectuated by the blockchain technology. By looking at an exemplar case study for India, this study provides insights into diverse research streams and practice.Design/methodology/approachBased on the case method, analyzing the implementation of blockchain in the coffee industry by a leading Indian software implementation of the logic, dynamics and forces for a provenance model has been devised. It further adopts a stakeholder cum institutional theory framework to understand the logical implementation of a blockchain project embedded in a territorial logic for a commodity supply chain.FindingsThis study specifically looks at coffee which is representative of a commodity supply chain. It also explores how the malaise of unfair value distribution gets addressed by bringing farmers and the consumers on a common platform facilitated by blockchain technology. This study contributes to the literature on blockchain, territory, commodity and supply chain. Using stakeholder cum institutional theory, this study helps to explore how the implementation is successful by different actors in the supply chain through collaboration.Research limitations/implicationsThis study provides a new stream of multi-disciplinary study at the interface of supply chain, technology, international trade and geography.Practical implicationsBlockchains are embedded in the supply chain, and supply chains are embedded in territories. This linkage is paramount and the ability to make these blockchain projects successful requires the deep study of the interaction of territory, technology and actors from the provenance angle. De-commodification of coffee can be actualized through blockchain.Social implicationsThe coffee paradox and skewed value distribution is also a social problem wherein the farmers do not get the right price of their produce and are exploited. This case also highlights how this social malaise can be addressed and rightful and equitable distribution of value happens across the value chain.Originality/valueThis linkage between territory, blockchain, commodity supply chain and institutions has not been discussed in the literature. Adopting the territorial design approach, this study is an attempt to stimulate inter-disciplinary conversations and thereby create a provenance framework for commodity and research questions for scholars from different disciplines and divergent disciplinary perspectives.

scholarly journals Supply Chain Competition: A Market Game Approach

2020 ◽  
Vol 66 (12) ◽  
pp. 5648-5664 ◽  
Author(s):  
C. Gizem Korpeoglu ◽  
Ersin Körpeoğlu ◽  
Soo-Haeng Cho
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Operations Management ◽  
Wholesale Price ◽  
Market Price ◽  
Market Game ◽  
Wholesale Market ◽  
Supply Chain Competition ◽  
Local Supply ◽  
Buyer Power

We study supply chains where multiple suppliers sell to multiple retailers through a wholesale market. In practice, we often observe that both suppliers and retailers tend to influence the wholesale market price that retailers pay to suppliers. However, existing models of supply chain competition do not capture retailers’ influence on the wholesale price (i.e., buyer power) and show that the wholesale price and the order quantity per retailer do not change with the number of retailers. To overcome this limitation, we develop a competition model based on the market game mechanism in which the wholesale price is determined based on both suppliers’ and retailers’ decisions. When taking into account retailers’ buyer power, we obtain the result that is consistent with the observed practice: As the number of retailers increases, each retailer’s buyer power decreases, and each retailer is willing to pay more for her order, so the wholesale price increases. In this case, supply chain expansion to include more retailers (or suppliers) turns out to be more beneficial in terms of supply chain efficiency than what the prior literature shows without considering buyer power. Finally, we analyze the integration of two local supply chains and show that although the profit of the integrated supply chain is greater than the sum of total profits of local supply chains, integration may reduce the total profit of firms in a retailer-oriented supply chain that has more retailers than suppliers. This paper was accepted by Charles Corbett, operations management.

Inventory Management in Competition Environment Based on Customer Service

2011 ◽  
Vol 58-60 ◽  
pp. 2141-2146
Author(s):  
Xiao Di ◽  
Bao Xing
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Customer Service ◽  
Inventory Management ◽  
Demand Uncertainty ◽  
Management Policy ◽  
Management Decision ◽  
Inventory Level ◽  
On Demand ◽  
Optimal Policies

Based on demand uncertainty, the paper studies inventory management decision of two competing supply chains from the perspective of customer service. The paper mainly discusses two different inventory strategies, which are widely used, that is, consignment stock and VMI, and analyzes the optimal policies under three competitive scenarios, which consist of using consignment stock in both supply chains (CC mode), using VMI in both supply chains (DD mode), and using consignment stock in one supply chain but VMI another (VC mode). The paper compares equilibrium inventory level and profit of supply chain in different competitive modes, and concludes that both supply chains use VMI is equilibrium, which means that when manufacturers have right to choose inventory management policy, they prefer VMI. But it isn’t paradoxical with the phenomenon that consignment stock is common in reality, because manufacturers are forced to use consignment by retailer’s channel power.

scholarly journals Mediating Dynamic Supply Chain Formation by Collaborative Single Machine Earliness/Tardiness Agents in Supply Mesh

2014 ◽  
Vol 2014 ◽  
pp. 1-21
Author(s):  
Hang Yang ◽  
Simon Fong ◽  
Yan Zhuang
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Single Machine ◽  
Intelligent Agents ◽  
Textile Industry ◽  
Make To Order ◽  
Simulation Based ◽  
Trading Partners ◽  
The Right ◽  
Complex Scenario

Nowadays, a trend of forming dynamic supply chains with different trading partners over different e-marketplaces has emerged. These supply chains, which are called “supply mesh,” generally refer to heterogeneous electronic marketplaces in which dynamic supply chains, as per project (often make-to-order), are formed across different parties. Conceptually, in a supply mesh a dynamic supply chain is formed vertically, mediating several companies for a project. Companies that are on the same level horizontally are either competitors or cohorts. A complex scenario such as this makes it challenging to find the right group of members for a dynamic supply chain. Earlier on, a multiagent model called the collaborative single machine earliness/tardiness (CSET) model was proposed for the optimal formation of make-to-order supply chains. This paper contributes the particular agent designs, for enabling the mediation of CSET in a supply mesh, and the possibilities are discussed. It is demonstrated via a computer simulation, based on samples from the U.S. textile industry, that by using intelligent agents under the CSET model it is possible to automatically find an ideal group of trading partners from a supply mesh.

scholarly journals Challenges and Features of Warehousing Operations with Respect to Logistics Warehouse Companies in Chennai

2019 ◽  
Vol 9 (1) ◽  
pp. 3304-3308
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Inventory Management ◽  
Cost Minimization ◽  
Cold Chain ◽  
Chain Management ◽  
Inventory Optimization ◽  
Current Trends ◽  
Warehouse Operations ◽  
Logistic Functions

Supply chain processes involved in this like sourcing, transportation, warehousing, inventory management, replenishment, cold chain management. Warehousing is the segment of enterprise logistic functions responsible for the storage space and managing of the inventories beginning with suppliers receipt and ending with the consumption point. Warehouse operations cover a number of significant areas, from the receiving, organization, fulfillment, and supply processes and areas including Receiving of goods, integrating and maintaining tracking software. Goal of warehouse operations is to satisfy customer’s desires and necessities whereas utilizing house, equipment, and labor effectively. The current trends and pressures on provide chain and logistics-forever increasing client examine levels, inventory optimization, time solidity and cost minimization have predictably changed the structure of supply chains and the location site and working of warehouses within the supply chains network .Supply Chain Management encompasses scheduling and organization of all activities involved in sourcing, procurement, conversion, and logistics managing activities. The business contains each variety of warehouses and the trendy multi-purpose supply centers furthermore because the ancient storage facilities called godowns.

scholarly journals FINANCIAL MECHANISMS OF OPTIMIZATION OF LOGISTIC FLOWS OF THE ORGANIZATION

2021 ◽  
Author(s):  
Maiia Cherkashyna
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Balanced Scorecard ◽  
Traffic Management ◽  
Economic Effect ◽  
Main Tool ◽  
Radius Of Curvature ◽  
Sharp Change ◽  
Adaptive Models ◽  
Abc Analysis

This article presents an analysis of financial mechanisms for optimizing the logistics flows of the organization. Emphasis is placed on the fact that adaptive models based on ostentatious smoothing of time series should be used to optimize the logistics flows of the organization as the main tool for short-term forecasting. In the context of this study, the main purpose of the introduction of logistical methods of managing the movement of goods is to obtain the greatest economic effect in the production of goods or services. The paper points out that the process of management and decision-making in the logistics system should be based on a system of appropriate financial indicators that characterize the effectiveness of this system. When forming such a system of indicators in the article it is recommended to calculate the following requirements: relevance, unambiguous integration, accuracy, focus on obtaining information, taking into account the main objectives of logistics. ABC analysis is used as a method to optimize the supply chain in this study. At the same time, special attention in the article is paid to such an aspect as the limited possibilities of standard distribution in ABC analysis, as a result of which the specifics of a specific set may not be reflected. To this end, the paper proposes to build a curve of ABC analysis. The study indicates that the sections of the curve where there is a sharp change in the radius of curvature will indicate the boundaries of groups A, B and C. To measure the effectiveness of supply chain management, the use of a balanced scorecard BSC is proposed. The use of BSC in the context of this article is justified by the fact that this method involves measuring both financial and operational indicators used at all organizational levels of management. The paper finds that the main object of analysis of traffic management in supply chains is its functional cycle. The study of parameters based on functional cycles in this article allows you to determine the dynamics, relationships and solutions, together creating an operating system for managing the movement of goods in supply chains.

scholarly journals Comparing continuous control policies by modeling and simulation of the procurement process

2020 ◽  
Vol 9 (1) ◽  
pp. 211
Author(s):  
Abdessamad Douraid ◽  
Hamid Ech-Cheikh ◽  
Khalid El Had ◽  
Mohamed Laradi
Keyword(s):  
Supply Chain ◽  
Inventory Control ◽  
Inventory Management ◽  
Discrete Event ◽  
Control Policy ◽  
Problem Area ◽  
Continuous Control ◽  
Control Policies ◽  
Procurement Process ◽  
The Right

Inventory management is a challenging problem area in supply chain management and companies need to have inventories in warehouses in order to satisfy customer's needs. Meanwhile, these inventories have holding costs and this is a frozen fund that can be lost. Therefore, the task of inventory management is to find the right quantity of inventories that will fulfill the demand with the right price, avoiding overstocks. The aim of this paper is to carry out a comparing study of continuous inventory control policies in a stochastic environment of demand and lead time, in order to find out the impacts of the decision variables of each inventory control policy. For this purpose, the discrete event simulation approach has been chosen to generate various scenarios of inventory control policies of the procurement process by taking into account the production planning of the manufacturing company. The comparison of these configurations based on the essential key performance indicators of the supply chain, namely the cost and service level.  

scholarly journals Control Model for Intelligent and Demand-Driven Supply Chains

2012 ◽  
pp. 262-283
Author(s):  
Jan Strandhagen ◽  
Heidi C. Dreyer ◽  
Anita Romsdal
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Operations Management ◽  
Relevant Information ◽  
Control Model ◽  
Information And Communications Technology ◽  
Future Research ◽  
Small Scale ◽  
Information And Communication ◽  
Trust And Power

Orchestrating supply chains is challenging. This chapter describes how to control a supply chain to make it truly demand-driven – based on the assumption that all relevant information is made available to all partners in real time. The chapter explores the elements of a framework for intelligent and demand-driven supply chain control, with regards to the overall concept and associated principles, and demonstrates these in a case example. Challenges to the realization of the proposed control model include trust and power, supply chain dynamicity and uncertainty, and required investments in competence, standardization, and information and communication technology. Some of these can be met through initial small-scale implementations of the proposed model, to demonstrate effects, and by exploiting facilities for information sharing and collaboration, like supply chain dashboards and control studios. Future research within operations management, technology and information and communications technology (ICT) will support broader realization of the proposed control model.

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