scholarly journals Supply chain and inventory management: A bibliographic review

2021 ◽  
pp. 45368-45371
Keyword(s):  
Supply Chain ◽  
Control Systems ◽  
Inventory Management ◽  
Service Level ◽  
Scientific Article ◽  
Stock Control ◽  
Product Availability ◽  
Management Procedures ◽  
Management Techniques ◽  
Advanced Knowledge

In order for stocks to be used with the lowest level of losses possible, there is a need to use control systems. This scientific article has a review about the stock in general, where it is discoursed on definition, classification and inherent costs as also inventory management, highlighting models and methods for their management. Some of the main indicators used in inventory management are presented, such as physical inventory, inventory accuracy, service level, inventory coverage, demand versus consumption, stock location, inventory reduction and ABC curve. Inventory management helps companies achieve adequate levels of inventory, thus ensuring greater product availability to the consumer with as little inventory as possible. Such control allows the manager to identify flaws and opportunities for improvement in the process. The inventory management theories in the article could be used by inventory managers who seek to improve and optimize their process. This research conducts a review of the main inventory management methods, and the main resources and benefits in stock control. The inventory management techniques described in the article can be implemented by managers without the need for advanced knowledge of statistics and programming. These are fundamental technical practices, which serve as a basis for the possible implementation of inventory management procedures.

scholarly journals Supply chain and inventory management: a bibliographic review

2021 ◽  
pp. 45368-45371
Keyword(s):  
Supply Chain ◽  
Control Systems ◽  
Inventory Management ◽  
Service Level ◽  
Scientific Article ◽  
Stock Control ◽  
Product Availability ◽  
Management Procedures ◽  
Management Techniques ◽  
Advanced Knowledge

In order for stocks to be used with the lowest level of losses possible, there is a need to use control systems. This scientific article has a review about the stock in general, where it is discoursed on definition, classification and inherent costs as also inventory management, highlighting models and methods for their management. Some of the main indicators used in inventory management are presented, such as physical inventory, inventory accuracy, service level, inventory coverage, demand versus consumption, stock location, inventory reduction and ABC curve. Inventory management helps companies achieve adequate levels of inventory, thus ensuring greater product availability to the consumer with as little inventory as possible. Such control allows the manager to identify flaws and opportunities for improvement in the process. The inventory management theories in the article could be used by inventory managers who seek to improve and optimize their process. This research conducts a review of the main inventory management methods, and the main resources and benefits in stock control. The inventory management techniques described in the article can be implemented by managers without the need for advanced knowledge of statistics and programming. These are fundamental technical practices, which serve as a basis for the possible implementation of inventory management procedures.

scholarly journals An Inventory Model for Deteriorating Drugs with Stochastic Lead Time

2018 ◽  
Vol 15 (12) ◽  
pp. 2772 ◽  
Author(s):  
Jian Li ◽  
Lu Liu ◽  
Hao Hu ◽  
Qiuhong Zhao ◽  
Libin Guo
Keyword(s):  
Shelf Life ◽  
Inventory Management ◽  
Lead Time ◽  
Service Level ◽  
Inventory Model ◽  
Effective Management ◽  
Product Availability ◽  
Stochastic Lead Time ◽  
Random Lead Time ◽  
The Right

Inventory management of deteriorating drugs has attracted considerable attention recently in hospitals. Drugs are a kind of special product. Two characteristics of some drugs are the shorter shelf life and high service level. This causes hospitals a great deal of difficulty in inventory management of perishable drugs. On one hand, hospitals should increase the drug inventory to achieve a higher service level. On the other hand, hospitals should decrease the drug inventory because of the short shelf life of drugs. An effective management of pharmaceuticals is required to ensure 100% product availability at the right time, at the right cost, in good conditions to the right customers. This requires a trade-off between shelf-life and service level. In addition, many uncontrollable factors can lead to random lead time of drugs. This paper focuses on deteriorating drugs with stochastic lead time. We have established a stochastic lead time inventory model for deteriorating drugs with fixed demand. The lead time obeyed a certain distribution function and shortages were allowed. This model also considered constraints on service level, stock space and drug shelf life. Through the analysis of the model, the shelf life of drugs and service level were weighted in different lead time distributions. Empirical analysis and sensitivity analysis were given to get reach important conclusions and enlightenment.

scholarly journals A literature review on multi-echelon inventory management: the case of pharmaceutical supply chain

2018 ◽  
Vol 200 ◽  
pp. 00013 ◽  
Author(s):  
Nouçaiba Sbai ◽  
Abdelaziz Berrado
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Inventory Management ◽  
Raw Materials ◽  
Integrated Approach ◽  
Service Level ◽  
Pharmaceutical Products ◽  
Management Problem ◽  
Pharmaceutical Supply Chain ◽  
Customer Service Level

Inventory management remains a key challenge in supply chain management. Many companies recognize the benefits of a good inventory management system. An effective inventory management helps reaching a high customer service level while dealing with demand variability. In a complex supply chain network where inventories are found across the entire system as raw materials or finished products, the need for an integrated approach for managing inventory had become crucial. Modelling the system as a multi-echelon inventory system allows to consider all the factors related to inventory optimization. On the other hand, the high criticality of the pharmaceutical products makes the need for a sophisticated supply chain inventory management essential. The implementation of the multi-echelon inventory management in such supply chains helps keeping the stock of pharmaceutical products available at the different installations. This paper provides an insight into the multi-echelon inventory management problem, especially in the pharmaceutical supply chain. A classification of several multi-echelon inventory systems according to a set of criteria is provided. A synthesis of multiple multi-echelon pharmaceutical supply chain problems is elaborated.

Supply chain management and market responsiveness: a simulation study

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulqadir Rahomee Ahmed Aljanabi ◽  
Karzan Mahdi Ghafour
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Supply And Demand ◽  
Service Level ◽  
Distribution Centers ◽  
Safety Stock ◽  
Content Type ◽  
Product Availability ◽  
Market Responsiveness ◽  
Number Of Customers

Purpose This study aims to provide a practical solution to the relationship between supply chain (SC) integration and market responsiveness (MR). A method is proposed to integrate SC and MR parameters, namely, product supply and demand in the context of low-value commodities (e.g. cement). Design/methodology/approach Simulation and forecasting approaches are adopted to develop a potential procedure for addressing demand during lead time. To establish inventory measurements (safety stock and reorder level) and increase MR and the satisfaction of customer’s needs, this study considers a downstream SC including manufacturers, depots and central distribution centers that satisfies an unbounded number of customers, which, in turn, transport the cement from the industrialist. Findings The demand during lead time is shown to follow a gamma distribution, a rare probability distribution that has not been considered in previous studies. Moreover, inventory measurements, such as the safety stock, depending on the safety factor under a certain service level (SL), which enables the SC to handle different responsiveness levels in accordance with customer requests. In addition, the quantities of the safety stock and reorder point represent an optimal value at each position to avoid over- or understocking. The role of SC characteristics in MR has largely been ignored in existing research. Originality/value This study applies SC flexibility analyzes to overcome the obstacles of analytical methods, especially when the production process involves probabilistic variables such as product availability and demand. The use of an efficient method for analyzing the forecasting results is an unprecedented idea that is proven efficacious in investigating non-dominated solutions. This approach provides near-optimal solutions to the trade-off between different levels of demand and the SC responsiveness (SLs) with minimal experimentation times.

Inventory Control and Replenishment of Multi-Product Multi-Echelon Based on Time Cost Under JMI Environment

2013 ◽  
Vol 5 (2) ◽  
pp. 19-30
Author(s):  
Zhi Chen ◽  
Chao Ren ◽  
Ren-long Zhang ◽  
Mi-Yuan Shan
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Service Level ◽  
Control Model ◽  
Management Tool ◽  
Time Cost ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
Replenishment Strategy

Joint managed inventory is an advanced supply chain inventory management tool, which will effectively tackle the complicated problem between the inventory cost of supply chain and service level. The research on inventory model and its’ control under JMI environment is a hot issue at present. In this paper, the authors deeply discuss the question of the inventory time costs about the multi-product and multi-echelon control model and its’ replenishment strategy under JMI environment. With considering the foundation of JMI and time cost, the authors propose the multi-product multi-echelon inventory cost control model under time cost. Then formulate corresponding replenishment strategy. At last, through a numerical example, the authors discover that the multi-product multi-echelon joint inventory management based on time cost can effectively reduce the total inventory costs and improve the competitiveness of the entire supply chain.

SUPPLY CHAIN PRACTICES AND ORGANIZATIONAL PERFORMANCE IN THE AGRIBUSINESS INDUSTRY IN KENYA: A CASE STUDY OF AMIRAN (K) LIMITED

2021 ◽  
pp. 54-65
Author(s):  
Kanina Muthoni ◽  
Paul Machoka
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Inventory Management ◽  
Material Handling ◽  
Strategic Decision ◽  
Organization Performance ◽  
Collaborative Relationships ◽  
Descriptive Research ◽  
Management Techniques ◽  
Proper Material

ABSTRACT Globally, firms in the agribusiness supply chain have found it increasingly difficult to satisfy customers due to their ever changing demands. Firms must be quick in responding to market demands since customer requirements and market conditions keep on changing. The study examined the effect of inventory management and assessed the effect of collaborative relationships on organizational performance in Amiran (K) Limited. Descriptive research design was used and a census was done involving all the workers in the five departments of Amiran (K) Limited. Both quantitative and qualitative data was gathered and analyzed using quantitative and qualitative procedures. The study found that the organization has adopted inventory management techniques to improve efficiency and the overall performance. The study established that the organization is keen on collaborative relationships with suppliers and is open to sharing information with partners. The findings revealed that inventory management plays a significant role in enabling the organization to enjoy competitiveness and achieve operations efficiency. The study found that collaborative relationships helps the suppliers improve products quality and there is willingness of collaboration in strategic decision making. The study concluded that inventory management has enabled the organization to put in place proper material handling processes and there is a significant influence of collaborative relationships and organization performance. The study recommends that Agribusiness firms should come up with policy frameworks to facilitate the inventory management techniques implementation. Managers should also give special attention to information sharing through collaborative relationships in order to improve organizational performance. Keywords: Agribusiness, Market Demands, Organizational Performance, Supply Chain.

scholarly journals Algorithmic Approaches to Inventory Management Optimization

Processes ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 102
Author(s):  
Hector D. Perez ◽  
Christian D. Hubbs ◽  
Can Li ◽  
Ignacio E. Grossmann
Keyword(s):  
Linear Programming ◽  
Supply Chain ◽  
Reinforcement Learning ◽  
Inventory Management ◽  
Production Capacity ◽  
Service Level ◽  
Management Problem ◽  
Deterministic Models ◽  
Multi Stage ◽  
Algorithmic Approaches

An inventory management problem is addressed for a make-to-order supply chain that has inventory holding and/or manufacturing locations at each node. The lead times between nodes and production capacity limits are heterogeneous across the network. This study focuses on a single product, a multi-period centralized system in which a retailer is subject to an uncertain stationary consumer demand at each time period. Two sales scenarios are considered for any unfulfilled demand: backlogging or lost sales. The daily inventory replenishment requests from immediate suppliers throughout the network are modeled and optimized using three different approaches: (1) deterministic linear programming, (2) multi-stage stochastic linear programming, and (3) reinforcement learning. The performance of the three methods is compared and contrasted in terms of profit (reward), service level, and inventory profiles throughout the supply chain. The proposed optimization strategies are tested in a stochastic simulation environment that was built upon the open-source OR-Gym Python package. The results indicate that, of the three approaches, stochastic modeling yields the largest increase in profit, whereas reinforcement learning creates more balanced inventory policies that would potentially respond well to network disruptions. Furthermore, deterministic models perform well in determining dynamic reorder policies that are comparable to reinforcement learning in terms of their profitability.

scholarly journals Research of material and technical resources inventory management in projects supply chains

2021 ◽  
Vol 2 (2(58)) ◽  
pp. 26-32
Author(s):  
Kateryna Semenchuk ◽  
Tetiana Shutenko
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Inventory Management ◽  
Product Life Cycle ◽  
Service Level ◽  
Project Managers ◽  
Chain Management ◽  
The Face ◽  
The Cost

The object of research is the processes of material and technical support of projects in the field of supply chain management. One of the most challenging areas faced by logistics and project managers is determining the appropriate level of supply chain inventory management when implementing projects. Today, there is a demand for the development and implementation of dynamic supply chains, the essence of which is to increase the service level by increasing the speed of response to customer requests and flexibility in excess components (high stock levels, unbalanced duration of supply cycles), taking into account the uncertainty of demand.The analysis of the justification of the value of the supply chain, namely of such components as logistics costs, the cost of storing inventories and deficit costs, is carried out. Models of inventory management in the supply chain with centralized and decentralized service are presented. Calculations of the indicators of the standard deviation of demand and the duration of the supply cycle, the values of the cyclic and safety stock are presented. For the situation of centralized service of the resource flow, the influence of the demand dependence on the stock level was investigated.The study used the theory of supply chain management and project management, which made it possible to take into account the variability of demand and the duration of supply. As a result of the work, models of the volume of insurance stocks in conditions of uncertainty in demand and the duration of the supply cycle of resources are proposed. In order to ensure the optimal strategy of resource provision, the concept of «service level» was investigated. The service level of the first kind (cyclical service level) and the service level of the second kind (saturated demand) are considered.The results of this research provide an opportunity to improve project efficiency in the face of volatile demand, reduced product life cycle and increased competition. Such changes require supply chains to develop strategies that are focused on the end user, that is, an integrated supply chain management strategy is required.

Retail supply chain service levels: the role of inventory storage

2016 ◽  
Vol 29 (6) ◽  
pp. 887-902 ◽  
Author(s):  
Asif Salam ◽  
Farhad Panahifar ◽  
P.J. Byrne
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Service Level ◽  
Retail Industry ◽  
Inventory Level ◽  
Content Type ◽  
Service Levels ◽  
Product Availability ◽  
Customer Service Level ◽  
The Relationship

Purpose In today’s competitive retail industry the most critical success factor is customer service which is indicated by product availability. It is argued that in the retail industry, product availability is an important measure of quality. The single most vital decision that every retailer needs to make is, how to maximize service level while keeping minimum inventory level. The purpose of this paper is to explain and demonstrate the relationship between inventory level and customer service level. Design/methodology/approach This study examines an inventory system utilizing a simulation model based on company data obtained from a retail fast-moving-consumer goods chain operating in Thailand. Findings The results suggest that the achievement of a responsive service level is dependent on managing an efficient supply chain in addition to logistics cost reductions. The findings also reveal the effect the inventory level has on the service level. From the findings of this study, demand variability and service level have been found to have the most significant influence on the inventory level. From the findings, it can also be shown that real and accurate information is very important for service supply chains. Practical implications The paper promotes the importance of having an appropriate inventory management policy for a retail chain which should be driven by retail companies in order to better balance inventory and service levels. Originality/value The relationship between the inventory level and customer service level lead to different outcomes at different combinations of inventory and service levels. Significant relationships were found between inventory and service levels.

scholarly journals Market-Oriented Procurement Planning Leading to a Higher Service Level and Cost Optimization

2020 ◽  
Vol 10 (23) ◽  
pp. 8734
Author(s):  
Sergio Gallego-García ◽  
Manuel García-García
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Demand Uncertainty ◽  
Industrial Revolution ◽  
Cost Optimization ◽  
Service Level ◽  
Global Market ◽  
Planning Model ◽  
The Impact ◽  
Procurement Planning

The current global market situation pursues high adaptability, but why? Complexity due to mass customization is greater than ever. Globalization is no longer a theory but a fact that makes disruptions in the globalized supply chain a major risk for operations. In this context, customers demand novelty and unique experiences. These are the main drivers for market success. Therefore, existing products are now in continuous states of change with shortened product lifecycles. The purpose of this article is to analyze the impact of new market entries and product changes along the lifecycle as well as supply chain disruptions in supplier inventory levels. The goal is to minimize costs by achieving a given service level with a market-oriented procurement planning model. The model pursues minimizing the time needed to align the system with the market and, therefore, the adaptability of the system. The research compares classical inventory management models with the new proposed approach by means of simulation with the system dynamics methodology. The results show how the proposed model increased the delivery service level, reduced inventory costs, and increased the utilization of resources due to lower demand uncertainty. Therefore, the developed model is able to plan the inventory supply with a low risk of stock outages. The conclusion proposes a differentiated forecasting and inventory strategy depending on the product lifecycle stage. The developed market-oriented procurement planning model provides guidance for inventory managers regarding how to optimize their operations as an opportunity within the fourth industrial revolution to develop information technology (IT) systems to gather and utilize demand and inventory data with real-time efficiency.

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