The Relevancy Of Inventory Management In Global Competitiveness Case Study
2.3 The Relevancy of Inventory Management (IM) in Global Competitiveness
Many authors have discussed the relationships between inventory management and competitive advantages in the perspective of large companies (Natarajan, 1991). Reducing production time by faster value addition to the materials will lead to a competitive advantage in the inventory cost. Inventory costs are decreased when the materials take less time to produce in the system. However, the inventory costs have been argued on determined not only by the level but also by duration of time that materials spend in the system (Narayanapillai, 2014).
Inventory management practices and organizational competitiveness inventory management are vital to all organizations to increase …show more content…
Due to the technological changes, the inventory management system has improved as compared to the existing time. The common inventory management systems are Economic Order Quantity (EOQ) and Just in Time (JIT). Besides Just in Time (JIT), there are automatic replenishment inventory and vendor or supplier managed systems that can be used to predict competitive position of the firms. They are also established positive relationship and important strength towards predicting completive advantage (John, Etim & Ime, 2015). Dadzie, Atanga & Ghansah (2016) has extended the inventory management policies to ABC, MRP (Materials resource planning) and ERP (Enterprise resource …show more content…
Bloomberg, Lemay and Hanna (2002) described that effective management of inventory has huge potentials for improving the efficiency of organizations and the firms that use scientific inventory control practices have a significant competitive advantage in the market. Alo (2010) found that it is more efficient for firms to produce a quite large number of items in each production run and store them for future use. Hence, the firms are allowed to pay back fixed setup costs over a larger number of units and achieving competitive edge through cost minimization. But, the sub-optimal inventory management practices are totally undermined the business growth and success (John, Etim & Ime,
Many authors have discussed the relationships between inventory management and competitive advantages in the perspective of large companies (Natarajan, 1991). Reducing production time by faster value addition to the materials will lead to a competitive advantage in the inventory cost. Inventory costs are decreased when the materials take less time to produce in the system. However, the inventory costs have been argued on determined not only by the level but also by duration of time that materials spend in the system (Narayanapillai, 2014).
Inventory management practices and organizational competitiveness inventory management are vital to all organizations to increase …show more content…
Due to the technological changes, the inventory management system has improved as compared to the existing time. The common inventory management systems are Economic Order Quantity (EOQ) and Just in Time (JIT). Besides Just in Time (JIT), there are automatic replenishment inventory and vendor or supplier managed systems that can be used to predict competitive position of the firms. They are also established positive relationship and important strength towards predicting completive advantage (John, Etim & Ime, 2015). Dadzie, Atanga & Ghansah (2016) has extended the inventory management policies to ABC, MRP (Materials resource planning) and ERP (Enterprise resource …show more content…
Bloomberg, Lemay and Hanna (2002) described that effective management of inventory has huge potentials for improving the efficiency of organizations and the firms that use scientific inventory control practices have a significant competitive advantage in the market. Alo (2010) found that it is more efficient for firms to produce a quite large number of items in each production run and store them for future use. Hence, the firms are allowed to pay back fixed setup costs over a larger number of units and achieving competitive edge through cost minimization. But, the sub-optimal inventory management practices are totally undermined the business growth and success (John, Etim & Ime,