Inventory Management Strategy: When are Shareholders Sensitive about Inventory Leanness?

2016 ◽  
Vol 2016 (1) ◽  
pp. 17154
Author(s):  
Subrata Chakrabarty ◽  
Lucas Wang
Author(s):  
Alan D. Smith

Implementing a just-in-time (JIT) inventory management strategy seems to be the latest hot topic in the business world, particularly in manufacturing industries. In today's competitive supply chain environment, more and more companies are either adopting JIT methodology or at least beginning to research and understand how JIT would affect their business. But what exactly is JIT? Many companies may be already putting into practice some of the concepts of JIT – such as looking at always improving or trying to reduce waste in terms of product or labor steps. Some companies may be fully ready to embrace a JIT operating process; yet, perhaps JIT is not the best choice for their business. The goal of this chapter is to develop a better understanding of JIT, from this history behind its inception to the various risks and benefits that relate to adopting JIT from an interdisciplinary/strategic approach to a transdisciplinary viewpoint. Those strategies, which include the basic methods of minimum stock, economic order quantity (EOQ), and Safety stock methods, are explored and explained in this chapter.


2020 ◽  
Vol 77 (4) ◽  
pp. 684-702
Author(s):  
Roberto Licandeo ◽  
Daniel E. Duplisea ◽  
Caroline Senay ◽  
Julie R. Marentette ◽  
Murdoch K. McAllister

There exist few recommendations for managing stocks with spasmodic recruitment, despite such stocks being not uncommon. Management procedures (MPs), developed for two species of redfish (Sebastes mentella and Sebastes fasciatus) in eastern Canada, are recommended for setting catch limits during periods of high and low abundance. A well-designed fishery-independent trawl survey is essential to provide advance warning of strong recruitment events and project future recruitment. Under an “inventory management” strategy, a more appropriate aim in spasmodic stocks may be to maximize the number of years with “good catches,” instead of maximizing total catches, as is traditionally considered in management strategy evaluation (MSE). Following a spasmodic recruitment event, an empirical harvest control rule based on larger fish delays the harvest of large cohorts by a few years, targets more commercially valuable fish sizes, and reduces the risk of growth overfishing. Capped MPs produced longer periods of large catches than uncapped MPs. MPs allowed for low harvests during periods of low abundance, thus avoiding unnecessary hardship in the industry. MPs evaluated here could be good candidates for other stocks with similar or less extreme recruitment variability.


IEEE Access ◽  
2016 ◽  
Vol 4 ◽  
pp. 10051-10058 ◽  
Author(s):  
Andrzej Bartoszewicz ◽  
Pawel Latosinski

Risks ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 63
Author(s):  
Grzegorz Zimon ◽  
Vitalina Babenko ◽  
Beata Sadowska ◽  
Katarzyna Chudy-Laskowska ◽  
Blanka Gosik

The COVID-19 virus has hit the economy around the world. In Poland, SMEs have the greatest problems with doing business. Border blockades and the quarantine for enterprises in virtually all industries throughout Poland greatly complicated the supply systems and the inventory management process. Up to now, SMEs have acted in group purchasing organizations to improve their competitive position. This form of activity also positively affects their financial security. Therefore, in this paper, the inventory management among this group of companies during the COVID-19 pandemic was analyzed. The purpose of the paper was to show how inventory management strategies changed during the COVID-19 pandemic in SMEs operating in industry GPOs. The analysis was carried out on a group of 88 Polish commercial enterprises operating in purchasing groups. The research period covered the years 2017–2019 and March–June 2020. The research showed a change in inventory management strategy in SMEs during the pandemic time of COVID-19. For the first four months, managers of enterprises tried to pursue a conservative policy and to accumulate stocks in the event of a shortage of supplies. This article also presents the form of security that was applied for SMEs operating in group purchasing organizations (GPOs) to avoid forced downtime caused by the COVID-19 pandemic.


2013 ◽  
Vol 1 (4) ◽  
pp. 518-522
Author(s):  
Lim Cai Qi ◽  
Shahryar Sorooshian`

Just-In Time (JIT) was a famous management strategy use in business manufacturing to reduce the cost by reducing the in-process inventory since 20th century. A demand-pull enables a firm to produce a goods or product in an actual quantity and at an actual time. This cause the stock level of raw material, work-in process inventory, finish goods inventory can be keep in minimum to eliminate the waste, remove variability and improve throughput. However, there still haveweaknesses or problem when implemented the JIT system. Therefore, method such as modification of executive management,modification of engineering, modification of inventory management and modification of human resources is modified to cover the weaknesses of the problem that exist in JIT system.


Author(s):  
Henry Inegbedion ◽  
Sunday Eze ◽  
Abiola Asaleye ◽  
Adedoyin Lawal

The study examined inventory management and organisational efficiency. The classical inventory management techniques were applied to an organisation’s inventory system. A door sales company in Ilorin, Nigeria that volunteered information on the basis of anonymity was used and relevant data were collected on six types of doors; panel, flush, sliding, folding and as well as manual and electronic garage doors. The company had no scientific inventory management strategy but the EOQ, inventory cycle time and reorder level were computed for the six doors using the average values of the data obtained for 2011-2017. The results show that the company can minimise its total inventory cost by consciously adopting an inventory management policy of ordering 55 panel doors, 41 flush doors, 41 sliding glass doors, 18 folding doors, 18 manual garage doors and 8 electronic garage doors respectively every cycle time of 17, 14, 17, 30, 35 and 34 days respectively or by placing the above orders each time the inventory level of panel doors, flush doors, sliding glass doors, folding doors, manual garage doors and electronic garage doors fall to 32, 24, 24, 5, 3 and 2 respectively and thus minimise the total cost of inventory.


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