A case study of inventory management in a manufacturing. It looks after the units in a firm and makes sure that they are in a moderate amount which does not affect the performance of a company. Journal of international business, innovation and strategic management vol 1 issue 5, 1838 issn. In the present era, where there is a competitive world in the area of business it is very important to control various costs to sustain in the market. Impact of inventory management on the financial performance of the firm vipulesh shardeo1 1m.
Inventory control involves managing the inventory that is already in the warehouse, stockroom or store. Inventory management is a very important function that determines the health of the supply chain as well as the impacts the financial health of the balance sheet. In this paper, we focus on inventory management in a manufacturing company in china. Ictom 04 the 4th international conference on technology and operations management 98 inventory management practices. In industrial contexts the proportion of the stock range that is devoted to spare parts is often considerable e. Inventory management practices play a major role in the operation of many businesses and manufacturing companies. The effect of inventory management on firm profitability.
Kagira 2012 also noted that kenya tea development agency managed factories faced problems of fluctuating inventory levels, poor forecasting and lack of proper inventory control systems due to poor strategic inventory management techniques leading to declined performance. Companies need to have inventories in warehouses in order to fulfil customer demand, meanwhile these inventories have. Our content team stays on top of everything trending in the world of ecommerce and wed love to share it all with you. Inventory is the second largest assets as shown in the statement of financial position in brewery industry. A study on relationship between inventory management and. Articles on inventory management management study guide.
The recent development in inventory management is jit justintime. Inventory management and its effects on customer satisfaction scott grant eckert1 abstract this study examines inventory management and the role it plays in improving customer satisfaction. Inventory management is a challenging problem area in supply chain management. This study investigates the impact of a warehouse management system on supply chain performance that provides less resources effort, more efficient, and reliable inventory management system. Smartturn is committed to fostering a selfsustaining community of inventory and warehouse experts through knowledge sharing and learning. Inventory management and its effects on customer satisfaction. Determinants of effective inventory management at kenol kobil limited. A study on relationship between inventory management and company performance. The results indicate that higher levels of inventory management practice can. The answers to these questions embrace the most important issues of inventory management.
Five strategies for improving inventory management across complex supply chain networks how companies think about growing network pressures and ways they can effectively respond introduction effective inventory management is at the core of supply chain management excellence. Misra, montclair state university, usa abstract abc analysis is a wellestablished categorization technique based on the pareto principle for. That is, when a user wants to order equipment or software, they would call up the inventory management. Fixedorder quantity system an order of fixed quantity, q, is placed when inventory drops to a reorder point, rop fixedtime period system inventory is checked in fixed time periods, t, and the quantity ordered. College of management science redeemers university mowe ogun state nigeria. Conversely, accurate inventory records result in lower inventory investment and are the foundation for forecasting, ordering, tracking, vendor evaluation, and dead stock administration programmes. Abstract inventory management is concerned with ensuring that all activities involved in storekeeping and stock control are carried out efficiently and economically by those employed in the store. There are no charges for publishing with inderscience, unless you require your article to be open access oa. Pdf a study of inventory management system case study. Role of inventory management on competitive advantage.
Effective inventory management effective inventory management is the result of outstanding inventory control and inventory management. Inventory management decisions are an integral aspect of organisations. Inventory journals supply chain management dynamics. The previous studies have indicated that there are several factors influencing the effectiveness of inventory management in the organization but there is lack of researchers who carried out the research in the manufacturing small medium enterprise in johor. Inventory management system and performance of food and beverages companies in nigeria lawrence imeokparia department of financial studies. The international journal of logistics management 192. The impact of inventory management on stockouts of.
Inventory management practices and their implications on. Pdf in daytoday management of the firm, it is essential to manage the. Researchers conduct such relevant research in several respects. Performance improvement of inventory management system. This topic describes how you can use inventory journals to post various types of physical inventory transactions. Ranganath keywords inventory management, survival, working capital, liquidity and profitability abstract inventory management is a crucial aspect of managing a company successfully. Inventory control system is the process of managing inventory in order to meet customer demand at the lowest possible cost and with a minimum of investment. The impact of inventory management practice on firms. It looks at how food companies have been under pressure to streamline their inventory. The term inventory can be defined as, the term inventory includes materials like raw, in process, finished packaging, spares and others. Techiem,department of management studies, indian school of mines,dhanbad, india abstract. Inventory management in supply chain sciencedirect.
The impact of inventory management practices on financial. Implementing an effective inventory management system. The international journal of supply chain and inventory management, from inderscience publishers. In manufacturing, inventories of raw materials allow companies to operate independently of their sources of supplies. In this roundup, we sifted through the top articles that will help you better understand the basics of inventory management. Inventory control as an effective decisionmaking model and. European journal of logistics purchasing and supply chain management vol. The effect of inventory management on organizational performance among textile manufacturing firms in kenya enock gideon musau phd. That is knowing, what products are out there, have much you have each item and where it is. Inventory management aims at efficient purchasing, storage and use of the materials. We are grateful to the following individuals and their. Inventory management system and performance of food and. The inventory journals in supply chain management are used to post physical inventory transactions of various types, such as the posting of issues and receipts, inventory movements, the creation of bills of materials boms, and the reconciliation of physical inventory.
To characterize the impact of widespread inventory management policies on. Inventory control problems often result in record and physical count discrepancies which may ultimately lead to higher than preferred inventory levels. Pdf inventory management is a challenging problem area in. The concept of inventory management inventory management is the art and science of maintaining stock levels of a given group of items incurring the least cost consistent with other relevant targets and objectives set by management jessop, 1999. Pdf a study on inventory management and its impact on.
The effect of inventory management on organizational. This research is made to study the application of just in time jit in inventory management at stamping production at electronics component industry. First, most of publications in logistics journals are about traditional inventory control models. How do decisions about stock affect other operations.
Purposethe purpose of this paper is to investigate the linkage between the determinants of inventory management and customer satisfaction within the context of. International journal of supply chain and inventory. Some really get it, but others do not seem to realize just how many dollars are falling through their fingers. Inventory management practices and their implications on perceived planning performance. European journal of business management, 1 11, 3461. In this context, the aim of this study is to test the hypothesis that efficient lean inventory management leads to an improvement in a firms financial performance. The effect of inventory management on firm performance.
Pdf the effects of inventory management on customer. Whatever your motivation, we invite you to read this ebook and raise the level of operational excellence in the inventory and warehouse management. International journal of economics, finance and management sciences. Five strategies for improving inventory management across. Pdf available in international journal of engineering management. Factors influencing the effectiveness of inventory. It aims to be an important and authoritative source of information for inventory theory. Supply chain candidate jomo kenyatta university of agriculture and technology, school of entrepreneurship, procurement and management, nairobi, kenya professor. This study aims to identify the key factors that influence inventory management practices, investigate efficient and effective inventory management approaches, and examine the impact of supplier cooperation on supply chain improvement. Every organization tries to maintain optimum inventory to be able to meet its requirements and avoid over or under inventory that can impact the financial condition. American journal of business education third quarter 2014.
Vereecke and verstraeten, 1994 and small improvements in spare parts management may be translated to substantial cost savings eaves. Ijir differentiates itself from other related journals by being fully devoted to inventory research. Inventory management is obliged for the goods in inventory, also to their inward flow and outward flow. Ijir publishes contemporary, cuttingedge research on all aspects of inventory theory to foster discussion among researchers, practitioners, and educators on the management and control of inventories. It has to embrace the use of refined business modelling techniques to understand the clearcut effects of changes in lead. Jit implies handling of inventory in a much disciplined way. Our goal here is to provide you with relevant information that will directly impact your business. Bridging the gap between research and classroom handanhal ravinder, montclair state university, usa ram b. The research centered on the concepts of inventory control. International journal of academic research in business and social sciences may 2015, vol. International journal of business, humanities and technology vol. Inventory management, cost of capital and firm performance. Lean management is getting more and more attention in todays highly competitive environment. Inventory systems inventory systems answer the questions.
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