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Process based inventory classification
Jönköping University, School of Engineering, JTH, Industrial Engineering and Management. Jönköping University, School of Engineering, JTH. Research area Industrial Engineering and Management.
Jönköping University, School of Engineering, JTH, Industrial Engineering and Management. Jönköping University, School of Engineering, JTH. Research area Industrial Engineering and Management.ORCID iD: 0000-0003-3783-0633
Jönköping University, School of Engineering, JTH, Industrial Engineering and Management. Jönköping University, School of Engineering, JTH. Research area Industrial Engineering and Management.
2009 (English)In: The 21st Annual Nofoma Conference 11-12 June 2009 Jönköping Sweden: Proceedings / [ed] Susanne Hertz, 2009, 875-889 p.Conference paper, Published paper (Refereed)
Abstract [en]

Purpose of this paper

The purpose of this paper is to develop a process based approach for inventory classification that can provide operational support and also offer a baseline for evaluation of inventory management across different delivery strategies.

Design/methodology/approach

The research is based on a literature overview and deductive conceptual model development.

Findings

Taking a process approach to inventory management highlights the drivers of different types of decoupling points. This approach paves the way to a process based classification using endogenous and exogenous factors of supply and demand as key drivers of inventory classification, enabling a more generic approach to inventory management across different delivery strategies such as make-to-stock and assemble-to-order.

Research limitations/implications

Process based inventory classification does not provide improved support for an accounting driven perspective of inventory but provides a complementary operational focus. Future work involves empirical research using this classification as a foundation.

Practical implications

Inventory classifications are frequently based on the materials flows, e.g. raw materials, work in process, and finished goods) or volume (e.g. standard ABC inventory management). A process based classification is, however, of practical use in a set of contexts usually not emphasized by present methods.

What is original/value of paper

A new approach to inventory classification is presented which in contrast with most present standard techniques emphasizes a process based perspective. The technique is therefore well aligned with the key perspective of operations and supply chain management involving the balancing of supply and demand in replenishment and fulfilment processes.

Place, publisher, year, edition, pages
2009. 875-889 p.
Keyword [en]
Inventory Classification, Inventory Management, Decoupling points, Process Based
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-10644OAI: oai:DiVA.org:hj-10644DiVA: diva2:272443
Conference
The 21st Annual Nofoma Conference, 11-12 June 2009 Jönköping Sweden
Available from: 2012-05-09 Created: 2009-10-15 Last updated: 2017-05-19Bibliographically approved

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