Abstract:PurposeInventory accumulation is a major problem for any organization, as it not only occupies the valuable storage space, but it also blocks the company's capital, leaving the owners with less cash to run the company's business. Aggregation of inventory in any organization contributes to inventory carrying cost; it affects labor productivity, increases equipment expenses and creates a loss of opportunity associated with it. Therefore, it is essential for any organization to come up with a solution to deal wit… Show more
“…To perform the classification of inventory, there must be a monitoring of key indicators that warn retailers about the presence of potential dead stocks in the inventory system. The indicators include product expiration [3][7], inventory movement [2], and inventory level [8]. The monitoring of product expiration and timely action on products that have short actual remaining shelf life allow retail businesses to prevent dead stocks in the warehouse that occur in the form of spoiled products [7].…”
Retail chain stores commonly experience dead stock inventory accumulation due to the absence of indicators and decision rules in the inventory management system to track down the impact of potential dead stocks when left “unattended” or “unmanaged” in the warehouse. Potential dead stocks are inventory items that are either near-expiry, near its end-of-season, near the end of its product market life cycle, or simply slow moving which will soon become dead stocks in the warehouse if not managed in a timely manner. Most retail systems have focused on fighting the dead stock fire rather than developing a standardized process to manage inventories and prevent potential dead stocks from becoming dead stocks. The systematic management perspective is to identify the potential dead stocks first and then apply the best strategies to prevent the occurrence of dead stocks. This research aims to develop a standardized potential dead stock identification and prioritization framework that will provide the level of priority for management intervention using decision rules. Literature review is performed to develop the indicators required. The framework is then validated through hypothetical data sets. As a result, the classification phase shows that the data sets produced similar industry findings on dead stock composition as a percentage of total inventory. Next, the prioritization phase shows that considering a 10-4-1 risk weight produces more discriminating ranks than a 9-3-1, adopted from the House of Quality (HOQ) framework. The rank discrimination is an important metric for this to address the primary research objective as it represents the ability of the framework to prioritize intervention given urgency based on criteria and resource constraints. Further research may be performed on enhancing the decision rules used in producing the prioritization output of the developed framework.
“…To perform the classification of inventory, there must be a monitoring of key indicators that warn retailers about the presence of potential dead stocks in the inventory system. The indicators include product expiration [3][7], inventory movement [2], and inventory level [8]. The monitoring of product expiration and timely action on products that have short actual remaining shelf life allow retail businesses to prevent dead stocks in the warehouse that occur in the form of spoiled products [7].…”
Retail chain stores commonly experience dead stock inventory accumulation due to the absence of indicators and decision rules in the inventory management system to track down the impact of potential dead stocks when left “unattended” or “unmanaged” in the warehouse. Potential dead stocks are inventory items that are either near-expiry, near its end-of-season, near the end of its product market life cycle, or simply slow moving which will soon become dead stocks in the warehouse if not managed in a timely manner. Most retail systems have focused on fighting the dead stock fire rather than developing a standardized process to manage inventories and prevent potential dead stocks from becoming dead stocks. The systematic management perspective is to identify the potential dead stocks first and then apply the best strategies to prevent the occurrence of dead stocks. This research aims to develop a standardized potential dead stock identification and prioritization framework that will provide the level of priority for management intervention using decision rules. Literature review is performed to develop the indicators required. The framework is then validated through hypothetical data sets. As a result, the classification phase shows that the data sets produced similar industry findings on dead stock composition as a percentage of total inventory. Next, the prioritization phase shows that considering a 10-4-1 risk weight produces more discriminating ranks than a 9-3-1, adopted from the House of Quality (HOQ) framework. The rank discrimination is an important metric for this to address the primary research objective as it represents the ability of the framework to prioritize intervention given urgency based on criteria and resource constraints. Further research may be performed on enhancing the decision rules used in producing the prioritization output of the developed framework.
“…MCDM models are developed to support decision making problems which involve multiple criteria. These models are frequently applied to solve problems in supply chain management such as supplier evaluation and selection [4][5][6][7], facility location selection [8][9][10], inventory management [11][12][13], etc. However, MDCM models are also utilized in other disciplines such as health science [14,15], banking and finance [16,17].…”
Production and business enterprises are aiming to improve their logistics activities in order to increase competitiveness. Therefore, the criteria and decision support models for selecting logistics service providers are significant to businesses. Fuzzy theory has been applied to almost all industrial engineering fields, such as decision making, operations research, quality control, project scheduling and many more. In this research, the authors combined fuzzy theory and a Multicriteria Decision Making (MCDM) model for the evaluation and selection of potential third-party logistics (3PL) providers. The goal is to take the advantages of these approaches and allow for more accurate and balanced (symmetric) decision making through their integration. The main contribution of this study is that it develops a complete approach to assessing the quality of the logistics service industry. The combined method of the SERVQUAL and FAHP–TOPSIS models not only provides reasonable results, but it also allows decision makers to visualize the impact of different criteria on the final outcome. Furthermore, this integrated model can provide valuable insights and methods for other areas to define service quality.
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