Chapter Ii: Related Literature And Studies Of Inventory System

Chapter II: Related Literature and Studies Review of Related Literature In exploration, we find new techniques, new knowledge, even develop new substances, gadgets, equipment, processes or procedures, imagination and skill is employed by the researcher. The commodities, new devices, services, in technology are needs of man for a better fuller life which is the concern of the research. These useful arts are the products of the technological environment and the end-user is society in general. The fast growing trend and innovation in technologies today prompts researchers to conduct studies about the efficiency of system program. This Chapter presents a brief review of literature and studies, both local and foreign that is related to these studies. Review of Related Studies The following statements given are related to our study about the inventory system which is found very useful for the proponents in making the system.

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"It is nearly impossible to overemphasize the importance of keeping inventory levels under control," Ronald Pachura wrote in an article for IIE Solutions. "Whether the problems incurred are caused by carrying too little or too much inventory, manufacturers need to become aware that inventory control is not just a materials management or warehouse department issue. The purchasing, receiving, engineering, manufacturing, and accounting departments all contribute to the accuracy of the inventory methods and records." It is little wonder that business experts commonly cite inventory management as a vital element that can spell the difference between success and failure in today's keenly competitive business world. Writing in Production and Inventory Management Journal, Godwin Udo described telecommunications technology as a critical organizational asset that can help a company realize important competitive gains in the area of inventory management. According to Udo, companies that make good use of this technology are far better

A Study On Inventory System

A study on inventory replenishment policies in a two-echelon supply chain system [pic] References and further reading may be available for this article. To view references and further reading you must purchase this article. H.T. Leea, [pic], [pic]and J.C. Wub aDepartment of Business Administration, National Taipei University, 151, University Rd., San Shia, Taipei, 237 Taiwan, ROC bInstitute of Business and Management, Lunghwa University of Science and Technology, 300 Wan-shou Road, Section 1, Kueishan, Taoyuan, Taiwan, ROC

Available online 7 September 2006. Abstract Inventory control plays an important role in supply chain management. Properly controlled inventory can satisfy customers demands, smooth the production plans, and reduce the operation costs; yet failing to budget the inventory expenses may lead to serious consequences. The bullwhip effect, observed in many supply chain management cases, causes excessive inventory

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due to information distortion, i.e. the order amount is exaggerated while a minor demand variation occurs, and the information amplified dramatically as the supply chain moves to the upstream. In this paper, one of the main causes of bullwhip effect, order batching, is considered. A simplified two-echelon supply chain system, with one supplier and one retailer that can choose different replenishment policies, is used as a demonstration. Two types of inventory replenishment methods are considered: the traditional methods (the event-triggered and the time-triggered ordering policies), and the statistical process control (SPC) based replenishment method. The results show that the latter outperforms the traditional method in the categories of inventory variation, and in the number of backlog when the fill-rate of the prior model is set to be 99%. This research provides a different approach to inventory cost-down other than the common methods like: information sharing, order batch cutting, and lead time reduction.