Article ID: | iaor20112314 |
Volume: | 8 |
Issue: | 2 |
Start Page Number: | 214 |
End Page Number: | 232 |
Publication Date: | Feb 2011 |
Journal: | International Journal of Logistics Systems and Management |
Authors: | Daine Tushar, Winnington Terry, Head Paul |
Keywords: | queues: applications, economics |
The underlying aim of this paper is to investigate the implications of excessive accumulation of stock on the performance of wholesale#47;retail sector supply chains. The accumulated stock can clog the supply system and reduce new sales opportunities and profitability of business. This paper explores the implications of applying Lean Pull approach to address this and related stock procurement problems. It also discusses the margin and capital losses, which occur when performance data is aggregated to support decision analysis. The investigation shows how transition from push to pull can both reduce stock accumulation and improve the performance of total supply chain.