Study And Analysis Of Finished Good Inventory & Logistic Management

Inventory management is a difficult problem area in supply chain management. Companies need to have inventories in warehouses in order to satisfy customer�s demand. These inventories have holding costs and frozen fund that can be lost. Therefore, the task of inventory management is to find the quantities of inventories that will satisfy customer demand and help in avoiding overstocks. This paper presents a study and analysis for the steel bar manufacturing industry (Small Scale Industry) on finished good inventory and logistics management. The research found that company Y had a few inventory problems such as unorganized finish good inventory arrangement, high vehicle in-vehicle out time and no provision for safety stock. The study also proved that how we can reduce the finished good inventory level and reduce the vehicle in- vehicle out time along with the introduction of safety stock. This paper also provides a recommendation to the company and for further research.

REFERENCES

[1] Zhang, G. (2008). Combining Acquisition Planning with Inventory Management under Uncertain Demand. INFOR: Information Systems and Operational Research, 46(2), 129-135. doi:10.3138/infor.46.2.129
[2] Kim, B., Leung, J. M., Park, K., Zhang, G., & Lee, S. (2002). Configuring a manufacturing firms supply network with multiple suppliers. IIE Transactions, 34(8), 663-677. doi:10.1080/07408170208928903
[3] Rosenblatt, M. J., Herer, Y. T., & Hefter, I. (1998). Note. An Acquisition Policy for a Single Item Multi-Supplier System. Management Science, 44 (11-part-2). doi: 10.1287/mnsc. 44.11.s96
[4] Sabri, E. H., & Beamon, B. M. (2000). A multi-objective approach to simultaneous strategic and operational planning in supply chain design. Omega, 28(5), 581-598. doi:10.1016/s0305-0483(99)00080-8
[5] Basnet, C., & Leung, J. M. (2005). Inventory lot-sizing with supplier selection. Computers & Operations Research,32(1), 1-14. doi: 10.1016/s0305-0548 (03) 00199-0
[6] SIMCHI-LEVI. (2019). DESIGNING AND MANAGING THE SUPPLY CHAIN: Concepts, strategies and case studies. Place of publication not identified: MCGRAW-HILL EDUCATION.
[7] Mattsson, S. (2007). Inventory control in environments with short lead times. International Journal of Physical Distribution & Logistics Management, 37(2), 115-130. doi:10.1108/09600030710734839
[8] Evers, P.T. and Beier, F.J. (1993), �The portfolio effect and multiple consolidation points: a critical assessment of the square root law�, Journal of Business Logistics, Vol. 14 No. 2, pp. 109-25.
[9] Evers, P.T. (1997), �Hidden beneﬁts of emergency transshipments�, Journal of Business Logistics, Vol. 18 No. 2, pp. 55-76.
[10] Seungjiae, S., Ennis, K. L., and Spurlin, W. P. (2015). Effect of inventory management efficiency on profitability: Current evidence from the U.S. manufacturing industry. Journal of Economics & Economic Education Research, 16(1), 98-106.
[11] Suvittawat, A. (2015). Effective inventory management of entrepreneurs in the eastern part of Thailand: 10 big questions.Information Management & Business Review, 7, (1), 67-71.
[12] Takim, S. (2014). Optimization of effective inventory control and management in manufacturing industries: a Case study of Flour Mills Company Calabar, Nigeria. Journal of Emerging Trends in Engineering & Applied Sciences, 5, (4), 265-276.
[13] Zanoni, S., Mazzoldi, L., and Jaber, M.Y. (2014). Vendor-managed inventory with consignment stock agreement for the single vendor-single buyer under the emission-trading scheme. International Journal of Production Research, 52, (1), 20-31.
[14] Yusuf, A. M. (2003). Inventory and economic order quantity in the National Electric Power Authority (NEPA). Ph.D. Thesis, St Clements University.
[15] DENTON, B. and GUPTA, D. (2004). Strategic inventory deployment in the steel industry. IIE Transactions, 36(11), pp.1083-1097.