Improving Business Performance through Effective Inventory Management.

Author(s)

Jimoh, M , Olakunle A.O , McNAY B.D ,

Download Full PDF Pages: 52-73 | Views: 350 | Downloads: 100 | DOI: 10.5281/zenodo.3463020

Volume 4 - November 2015 (11)

Abstract

This paper seeks to analyse inventory management systems in the grocery stores in Aberdeen, UK and see how it impacts on the business performance such as customer satisfaction and cost. In an attempt to gain an an understanding of inventory management the grocery retail sector in the UK was analysed. A purposive non probability sampling technique was adopted for the research using the qualitative research approach. A case study approach was adopted to further analyse inventory management systems and it effect on supply chain performance within the grocery retailing stores. The sampling size for the research was restricted to those practitioners who are involved in inventory management in grocery stores and those involved in customer services. 

Keywords

Business Performance, Inventory Management, Customer Satisfaction and Cost

References

  1. Amaratunga, D., Baldry, D., Sarshar, M. & Newton, R. (2002). Quantitative and qualitative research in the built environment: application of "mixed" research approach. Work study, 51(1), 17-31.
  2. Atkinson, W. (2010, January/February). Technology Trends in the Retail Supply chain. Supply Chain Management Review, S49-S51.
  3. Ballard, R. L. (1996). Methods of inventory monitoring and measurement. Logistics Information Management, 9(3), 11-18.
  4. Bounds, A., Rigby, E. & Goff, S. (2010). The Co-op highlights mutual model. London: The Financial Times LTD. Retrieved from: http://www.ft.com/cms/s/0/21546020-32f6-11df-bf5f-00144feabdc0.html.
  5. Branch, E. (2009). Global Supply Chain Management and International Logistics. New York, United Kingdom: Routledge.
  6. Cachon, G.P. & Fisher, M. (2000). Supply Chain Inventory Management and the Value of Shared Information. Management Science. 46(8), 1032–1048.
  7. Chase, R.B., Jacobs, F.R. & Aquilano, N. J. (2004). Operations Management for Competitive Advantage (10th ed.) New York, NY: McGraw-Hill/Irwin.
  8. Christopher, M. & Towill, D.R. (2002). Developing market specific supply chain strategies. International Journal of Logistics Management, 13(1), 1-14.
  9. Christopher, M., (1992). Logistics & Supply Chain Management. Pitmans: London
  10. Derrouiche, R., Neubert, G. & Bouras, A. (2008). Supply chain management: A framework to characterize the collaborative strategies. International Journal of Computer integrated Manufacturing, 21(4), 426-439.
  11. Disney, S. M. & Towill, D. R. (2003b). The effect of vendor managed inventory dynamics on the Bullwhip effect in supply chains. International Journal of Production Economics, 85, 199-215.
  12. Dominick, C. (2010). Calculating The Cost of a Stock-out. Retrieved from: http://nextlevelpurchasing.com/articles/stockout-cost.html.
  13. Easterby-Smith M., Thorpe R. & Lowe A. (1991). The philosophy of research design. Management Research an Introduction. London: Sage. Emmett, S. & Crocker, B. (2006). The relationship - Driven supply chain. Hamsphire: Gower.
  14. Fildes, R.A., Goodwin, P., Lawrence, M. & Nikolopoulos, K. (2009). Effective forecasting and judgmental adjustments: An empirical evaluation and strategies for improvement in supply-chain Planning. International Journal of Forecasting. 25(1), 3–23.
  15. Fleisch, E. & Tellkamp, C. (2005). Inventory inaccuracy and supply chain performance: A simulation study of a retail supply chain. International Journal of Production Economics, 95, 373–385.
  16. Fliedner, G. (2003). CPFR: An emerging supply chain tool. Industrial Management & Data Systems. 103(1), 14-21.
  17. Fliedner, G. (2005). Collaborative Supply Chain Forecasting: A Lean Framework. Alliance Journal of Business Research. 33-48.
  18. Giannoccaro, I., Pontrandolfo, P. & Scozzi, B. (2003). A fuzzy echelon approach for inventory management in supply chains. European Journal of Operation Research, 149, 185-196.
  19. Guo W., Wiese, H. and Xu, Y. (2007). The Contract Game of Inventory Management in Supply Chain. Wireless Communications, Networking and Mobile Computing, 4710 – 4713. doi:10.1109/WICOM.2007.1157
  20. Henningsson, E. & Linden, T. (2005). Vendor Managed Inventory: Enlightening Benefits and Negative Effects of VMI for Ikea and its Suppliers (Unpublished master‟s thesis). Lulea University of Technology, Sweden.
  21. IGD (2010). UK Grocery retailing. Watford, Hertfordshire: The Institute of Grocery Distribution. Retrieved from http://igd.biz/index.asp?id=1&fid=1&sid=7&tid=26&cid=94.
  22. IGD (2014). Retrieved from: http://www.igd.com/Research/Retail/Wholesaling-and-foodservice/25729/2014-ayear-of-mixed-fortunes-for-wholesale-/
  23. Jammernegg, W. & Reiner, G. (2007). Performance improvement of supply chain processes by coordinated inventory and capacity management. International Journal of Production Economics, 108, 183–190.
  24. Larson, P. D. & DeMarais, R. A. (1999). Psyschic Stock: An independent variable category inventory. International Journal of Physical Distribution and Logistics Management, 29(7/8), 495-507.
  25. Lau, R.S.M., Xie, J., & Zhao, X. (2008). Effects of inventory policy on supply chain performance: A simulation study of critical decision parameters. Computers and Industrial Engineering, 55,620–633.
  26. Lee, H., Padmanabhan, V., & Whang, S. (1997). The bullwhip effect in supply chains. Sloan Management Review. 38(3), 93–102.
  27. Mangal, D. & Chandna, P. (2009). Inventory control in supply chain through lateral transshipment – A Case Study in Indian Industry. International Journal of Engineering, 3(5), 443-457.
  28. Mark, R. (1996). Research made simple: A handbook for Social Workers. California: Sage Publication Inc.
  29. Mazhar, N. (2008). Inventory and the Bottom Line. Retrieved from:http://www.ctssys.com/images/news/APICS_Houston_Chapter_36.pdf.
  30. Minner, S. (2003). Multiple-supplier inventory models in supply chain management: A review. International Journal of Production Economics, 81-82, 265-279.
  31. Monczka, R., Trent, R., & Handfield, R. (2005). Purchasing and Supply Chain Management. Mason, OH: Thomson South-Western.
  32. MORRISONS (2010). Annual report and financial Statement 2010. Bradford: Morrison Supermarket Plc. Retrieved from: http://www.morrisons.co.uk/Corporate/2010/AnnualReport/strategic-review/marketoverview/#.
  33. Nadeem Mazhar, (2008). Optimize Inventory for Bottom-line Improvements. Retrieved from: http://www.sdcexec.com/article/10289567/optimize-inventory-for-bottom-line-improvements
  34. Patton, M.Q. (2000). Qualitative evaluation and research methods (3rd ed.). Thousand Oaks, CA:Sage.
  35. Porter, M. E. (1985). The Competitive Advantage: Creating and Sustaining Superior Performance. NY: Free Press.
  36. Raghunathan, S. (1999). Inter organizational collaborative forecasting and replenishment systems and supply chain implications. Decision Sciences, 30(4), 1053 - 1071.
  37. Raman, A., DeHoratius, N. & Ton, Z. (2001). The Achilles' Heel of Supply Chain Management. Harvard Business Review, 79(5), 25 - 28.
  38. Sari, K. (2008). Inventory inaccuracy and performance of collaborative supply chain practices. Industrial Management & Data Systems, 108(4), 495-509.
  39. Saunders, M., Lewis, P. & Thornhill, A. (2003). Research Methods for Business Students (3rd ed). Harlow: FT/Prentice Hall.
  40. Saunders, M., Lewis, P. & Thornhill, A. (2007). Research Methods for Business Students. Prentice Hall.
  41. Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (3rd ed. ). (2008). Designing and managing the supply chain: Concepts, strategies and case studies. Boston; London : McGraw-Hill/Irwin
  42. Slack, N., Chambers, S. & Johnston, R. (6th ed.). (2010). Operations Management. Harlow: Financial times Prentice Hall.
  43. Strauss, Anselm L. & Corbin, J.M. (2nd ed.). (1998). Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory. Thousand Oaks, CA:Sage.
  44. Syntetos, A.A., Nikolopoulos, K. & Boylan, J.E. (2010). Judging the judges through accuracy-implication metrics: The case of inventory forecasting. International Journal of Forecasting, 26, 134-143.
  45. Tersine, R. (1994). Principles of Inventory and Materials Management (4 ed.). Prentice Hall.
  46. Tharenou, P., Donohue, R. & Cooper, B. (2007). Management Research Methods. Cambridge University Press: Melbourne.
  47. Tyan, J. & Wee, H.M. (2003). Vendor managed inventory: A survey of the Taiwanese grocery industry. Journal of Purchasing and Supply Management, 9(1), 11-18.
  48. Vastag, G. & Whybark, D.C. (2005). Inventory management: Is there a knock-on effect? International Journal of Production Economics, 93–94, 129–138.
  49. Verdict (2008). UK Food & Grocery Retailers 2008: Competition intensifies as demand cools. Retrieved from: http://www.verdict.co.uk/Marketing/dmvt0426m.pdf.
  50. Waller, D. L. (2nd ed.) (2002). Operations Management: A supply chain approach. London: Thomson
  51. Waller, M. A., Nachtmann, H. & Hunter, J. (2006). Measuring the impact of inaccurate inventory information on a retail outlet. International Journal of Logistics Management, 17(3), 355 – 376.
  52. Waller, M.A., Johnson, M.E. & Davis, T. (1999). Vendor-managed inventory in the retail supply chain. Journal of Business Logistics. 20(1), 183–203.
  53. Waller, M.A., Richard, C. C. and Ozment, J. (2006). Impact of cross-docking on inventory in a decentralized retail supply chain. Transportation Research, Part E 42, 359–382.
  54. Wallin, C. M., Rungtusanatham, M.J. & Elliot Rabinovich, E. (2006). What is the “right” inventory management approach for a purchased item? International Journal of Operations and Production Management. 26(1), 50-68.
  55. Werner, J. & Gerald, R. (2007). Performance improvement of supply chain processes by coordinated inventory and capacity management. International Journal of Production Economics. 108(1-2), 183-190.
  56. WILD, A. (2002). Best practice in inventory management. Retrieved from: http://books.google.co.uk/books?id=QseYtErYgBoC&pg=PA60&lpg=PA60&dq=“Holding+inventory+shows+ that+we+don‟t+have+control&source=bl&ots=1pHz3iE95w&sig=eBLFURk3yWwj7y_Lrbq_u1LxEuI&hl=en &ei=IRTjS1GhqCxBtvtrQ0&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBcQ6AEwAA#v=onepage&q&f=false .
  57. Wild, R. (1995). Production and Operations Management (5th edition). Cassel: London.
  58. Williams, B.D. & Tokar, T. (2008). A review of inventory management research in major logistics journals. The International Journal of Logistics Management. 19(2), 212–232.
  59. Yao, Y., Dong, Y. & Dresner, M. (2010). Managing supply chain backorders under vendor managed inventory: An incentive approach and empirical analysis. European Journal of Operational Research, 203(2), 350-359.
  60. Yeo, K. T., & Ning, J. H. (2002). Integrating supply chain and critical chain concepts in engineer-procureconstruct (EPC) projects. International Journal of Project Management, 20(4), 253-262.
  61. YIN, R.K. (1989). Case Study Research. London: Sage Publication

Cite this Article: