Inventory control systems: theory and practice

Inventory control systems: theory and practice

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Article ID: iaor20061917
Country: United Kingdom
Volume: 1
Issue: 2
Start Page Number: 158
End Page Number: 170
Publication Date: Mar 2006
Journal: International Journal of Information and Operations Management Education
Authors:
Keywords: education in OR, behaviour
Abstract:

The paper reviews the general methodology for the design of inventory control systems as advocated in typical operations management textbooks. Surprisingly, some of the broad directives are quite confusing and the underlying logic of these directives is inconsistent. Several published cases are analysed to try and clarify the current situation. The exercise reveals the source of the problem. By and large, stock control theory focuses on the activities of the purchasing company. Therefore, it glosses over the potential impact of different ordering policies upon the warehouse and transport operations taking place at the suppliers' end. These twin activities benefit from stable resource(s) planning, which is linked to regular delivery schedules along predetermined vehicle routes. However, much depends on the strength of the relevant customer–supplier relationship.

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