Thematic Analysis Of Inventory Management

Key Theme

Description

Dominant Concepts

References

1.

Use of technology in management of inventory

IT or  information technology now permits companies to convey inventory records as well as demand economically and swiftly

Scanners gather data regarding transactions, and electronic information exchange lets the sharing of info directly in every phase of the Supply Chain

Anon (2015)

Setting par levels

Inventory control should be stress-free by establishing ‘par levels’ for every product.

Par level is the least possible quantity of products which should be readily available anytime

2.

Risk aversion in inventory management

Customary inventory models concentrate on nonpartisan managers, i.e., describing renewal systems that amplify the normal aggregate profit, or comparable, limit the normal aggregate cost over an arranged time-line.

Not every inventory manager is neutral to risk; most of them are keen on adjusting lower the anticipated profit to lessen a potential loss.

Aula (2010)

First-in, first-out (FIFO)

It is a significant code of inventory control. Essentially, old stock (first-in) is vented first (first-out), and not the new inventory.

It is the main key for fresh produce to avoid the obsolete or expired stock.

3.

Organizing evaluation schemes and inventory management

Ordering choices and pricing are established at the start of every schedule, and every shortage is accumulated.

The dominant concept is maximizing the expected discount or the likely normal profit on the boundless preparation schedule.

Brown (2014)

Manage associates

A measure of success in inventory control is adapting swiftly; may be a retailer needs to take back a sluggish moving product to create space for new products or re-stock a fast moving product.

It is significant to keep a worthy relation with the supplier; they are more keen on working with that particular merchant.

4.

Multi-supplier inventory modes in Supply Chain Management

The key benchmarks for choosing suppliers are quality, costs, and service (time of delivery and steadfastness).

Current patterns in provider management and sourcing amid the previous decade indicate expanding worldwide sourcing, a decrease of the supplier base for a solitary thing, what’s more, long-haul associations with providers rather than spot recharges.

Eyun?Jung & Linda (2012)

Eventuality plan

Many problems occur concerning inventory control; such issues weaken off-handed merchants.

The dominant concept in this theme is to have a backup plan in case of a random sales spike, among other issues.  

5.

Zero-inventory fundamentals or Just-in-Time (JIT)

Zero-inventory system or JIT is a perfect model of Inventory Management where

manufacturers can provide supplies when needed, at any time and anywhere needed.

The dominant concept is delivering goods Just In Time with 100% stock assurance.

Heaslip (2013)

Regular auditing

The ordered settlement is important in inventory management. Mostly, a merchant relies on reports and software from the storeroom to recognize items stocked.

It is essential to ensure that the evidence of the inventory matches up.

6.

Material resource planning (MRP)

If the final product to be produced is known, it is also known how much components and materials are necessary for producing

A certain product.

MRP indicates the type of material and quantity to be purchased, bearing in mind the current inventory levels

Hsu (2011)

Prioritize in an alphabetical manner

Certain items require responsiveness more than other items. Making use of an A-B-C breakdown to select inventory control.

The dominant concept is separating items that need responsiveness from items that can wait a bit longer.

7.

Time-phased order point (TPOP) system

TPOP is an automated management system that designs inventory requirements in need grouping, time-staged way to take care of clients and figure demand as it happens.

Inventory activities are activated by coordinating supply with the expected request as it happens in due time.

Jagersma (2010)

Accurate estimation

A big measure of worthy inventory control is correctly forecasting requests (demand).

There are several uncertainties, but the dominant concept is to notice the tendencies in the marketplace.

8.

Economies of scale

Companies hold inventories to influence reserve funds from unit to value decrease when buys are made in volume.

Purchasing materials in bulk save the company some money.

Brown (2014)

Drop shipping

It is a perfect setup from an inventory control viewpoint.

The main concept is rather than carrying stock and ship merchandises, the wholesaler or manufacturer does it through drop shipping. Essentially, fully removing inventory control from the enterprise.

9.

Balance demand and supply

Companies hold inventory because seasons imply that generation should in some cases be ahead of time of interest at that point held against that request.

Raw materials may only be available at a particular time of year.

(Heaslip, 2013)

Maintaining different levels of stock

The retailer should choose the minimum point, maximum point, re-ordering point, and normal point of stock to avoid over-stocking or understocking.

The re-ordering point is in the maximum and minimum points so that the amount of stock signified by the change of the re-ordering and the minimum point is enough for the demands until replenishment.

10.

Specialization

Completed products delivered by one association are blended or packaged with another association to take care of client orders.

It is better for a company to produce one type of product to maintain high-quality standards

(Kim et al., 2013)

Making an inventory budget

Organizations with big inventory necessity usually make procurement budgets. It ought to be made before replenishment.

The financial plan for consumable as well as production stock in addition to capital-based inventory ought to be made individually.

11.

Inventory as a buffer

Inventory can be held as a cushion (buffer) in various places in the supply chain – provider/acquirement, generation, showcasing, and dissemination.

A company should maintain adequate levels of stock.

(Rothaermel, 2013)

Keeping a continuous inventory

This is an extra theme for exercising inventory control; or automated inventory coordination.

The dominant concept of such an arrangement is availing information regarding the amount plus the worth of inventory anytime.

12.

Dead-stock

Dead-stock occurs when a company produces obsolete products due to lack of accurate forecasts.

A company should avoid dead-stock by selling at lower prices or just recycling the products

(Rothaermel, 2013)

Putting up a procurement process.

An accurate procurement process should be recognized and then implemented to guarantee essential inventory management.

The start of purchasing commences after the receipt of a buying request in the procurement unit.

13.

The bullwhip effect

It is one result of getting ready for a boundless limit, delays caused by an absence of either information or inventory at any phase in the process send signals that there is a lack of work-in-progress or completed merchandise of a specific sort.

This prompts generation of an order to make up the gathered deficiency – and, as the line of information as well as inventory holding expand, the issue is worsened.

(Satish & Rajesh, 2014)

Bulk shipment

This technique makes the most of the idea that it is inexpensive to buy and distribute items in wholesale. Therefore a merchant plans to re-order items and restock his list occasionally.

Bulk shipping is a dominant inventory control concept, that is implemented for products having extraordinary demand from the market.

14.

Collaborative Planning, forecasting, and replenishment (CPFR).

It is a procedure empowered by technology and has principally been connected in the bundled products industry.

Enhanced sharing of key business information, shared foundations and joint determining/arrangement obligation

(Schwaninger, 2015)

Economic Order Quantity (EOQ) model

The simple choice of EOQ process is determining the quantity to be purchased at a specific moment with the intention of purchasing and delivery charges may be lessened to the lowest level.

A merchant ought to place an order that isn’t too big or minor. The EOQ is the point of ordering inventory which reduces the overall charges regarding the inventory.

15.

Limiting the blockage of financial resources.

It diminishes the superfluous tying up of capital in overabundant inventories.

The dominant concept is that it enhances the liquidity situation of a company.

(Watkins et al., 2012)