On-Time Delivery rating is highly determined by the performance of the Inventory Management.A study in the aerospace industry in Malaysia (original) (raw)
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Supply chain management has always been fascinating to study. Not only goods but also the integration of logistical complexities to meet the requirements of customers or corporations (Extron, 2012). At the same time, inventory management is also fundamental in supply chain management (Dorfman, 1954; Hult et al., 2004). Warehouse management systems play an important role in logistics to maintain effectiveness, controlling movement and storage of materials. This system is critical because it involves chain management. This study strives to find evidence on order picking systems to maximize warehouse space and warehouse performance. Also, this study attempts to test the likelihood that inventory management has a significant influence on financial performance in the manufacturing industry. The methodology relies on qualitative and quantitative approaches to note the successful implementation of the order picking system, and the financial impact. This study provides evidence on the substantial relationships among SCM, inventory management & financial performance.
International Journal of Recent Technology and Engineering (IJRTE), 2019
Inventory management is considered to be the most important function in every manufacturing firms. Steel industries in India are facing top competition in determining appropriate level of inventory that should be maintained by firms towards meeting at customer needs as well as smooth production process. Research paper aims to empirically examine the impact of Inventory Management Practices (IMP) on the Production Performances (PP) of the manufacturing industry. Due to various internal and external factors, inventory costs get volatile, which create scarcity of required inventory due to unexpected demand and supply. Looking at the global competition in recent days, the manufacturing industries are adopting various strategies related to different IMP like, ABC model, EOQ model, VMI Model, MRP, DFI etc. The present study comprises of 7 steel manufacturing firms of India and data were collected from 109 respondents selected at random by administer of structured questionnaires. The respondent selected for the study are production manager, purchase manager, warehouse manager etc. of IMP organizations. Different statistical tools were used for identification research problems. Findings revealed that selected 3 techniques of IMP have strong relationship with Production Performances. Study concludes that effective management of IMP will able to provide competitive advantages for manufacturing industry to survive in long run.
Inventory Management Practices and its Effects on Vendor Managed Inventory Performance
The Vendor Managed Inventory (VMI) has long been implemented by many corporations due to its various positive effects it has towards the company's performance. At the same time, a number of success stories of VMI program have also been discussed by numerous authors. However, until now, there is no concrete conclusion on VMI has been clarified. Therefore, this study tries to shed the lights on the effects of inventory management practices, which include visibility of demand, replenishment decision, inventory ownership, inventory location, and inventory control limits on VMI performance. Quantitative methodology was chosen as the method to gather the data where those manufacturing companies being selected according to the list from the Federation of Malaysian Manufacturer (FMM). The data was gathered from 101 manufacturing companies whose manufacturing based located in Malaysia. Data analysis was conducted by employing descriptive analysis, factor analysis, reliability analysis, and a simple multiple regressions. The findings showed that visibility of demand and inventory control limits were the main predictor of service performance. Meanwhile, only inventory location contributes to cost performance of VMI. Manufacturing companies should urge their customer to share demand information and setting appropriate min-max limits of inventory levels in order to get benefits from VMI program. It was suggested for companies to consider to setup inventory storage or warehouse near to their customer's premises especially when engaging with abroad customers.
Analysis of Inventory Management Performance – A Case Study
International Journal of Engineering Research and, 2017
The success of a product in today's global market place depends on capabilities of firms in the product's supply chain. Among these capabilities, effective inventory management is a capability necessary to lead in the global market place. The purpose of inventory management is to ensure availability of materials insufficient quantity as and when required and also to minimize investment in inventories. .This paper will therefore will help to understand the nature of inventory management of the supply store by applying suitable inventory management technique to the sample of the products of an enterprise which were more frequent in demand)
Factors Influencing the Effectiveness of Inventory Management.pdf
Effectiveness of inventory management is a vital part in the manufacturing organization to be more competitive. The previous studies have indicated that there are several factors influencing the effectiveness of inventory management in the organization but there is lack of researchers who carried out the research in the manufacturing small medium enterprise in Johor. Therefore, the purpose of this research is to identify the problem of inventory management faced by the manufacturing small medium enterprise and also to determine the factors that will influence the effectiveness of inventory management. In completing this research, 80 employees were selected randomly from the manufacturing small medium enterprise in Batu Pahat, Johor and they were requested to complete questionnaires. The result have shown that the problems of inventory management faced by manufacturing organization were underproduction, overproduction, stock out situation, delays in the delivery of raw materials and discrepancy of records. The factors, documentation/store records, planning, knowledge of employees/staff skill have shown to significantly influence the effectiveness of inventory management while the funds have shown slightly significant influence on the inventory management in manufacturing small medium enterprises. This quantitative study is important to the manufacturing organization in Malaysia because it provides the guidelines to the employers of manufacturing small medium enterprises in Batu Pahat, Johor.
2010
This preliminary study examines the supply chain management (SCM) practices implemented at an automobile manufacturing firm operating in Malaysia. The case company’s performance measurement system and the accountant’s role in the SCM processes are also examined. The case findings indicate that supply chain planning, long term partnership with suppliers, communication and trust form the basis of effective SCM practices in the selected case company. Contrary to the literature, efforts dedicated to measure and monitor supply chain performance holistically within the case company is still scarce. The findings also suggest that despite the wide use of management accounting tools and practices in SCM processes, accountants’ role in the SCM processes is limited. This initial findings offer some insights on the SCM practices in an automotive manufacturing industry. A next step from this exploratory research could be the development of a framework exploring the impact of SCM practices on org...
THE IMPACT OF INVENTORY MANAGEMENT ON FINANCIAL PERFORMANCE.
This research was conducted to determine the impacts of inventory management on the financial performance of XYZ Packaging (Cambodia) Co., Ltd and to identify strategies that can be implemented to overcome challenges in inventory management impact on financial performance. The research was designed using a quantitative approach that used correlation and regression to analyse the data. The target population was 55 employees comprised of management and staff of XYZ Packaging (Cambodia) Co., Ltd who work in the accounting, procurement, production, and inventory management departments. The primary data was collected from the close-ended questionnaire distributed to the respondents and collected data coded and recorded into the SPSS programme for analysis. The analysis was conducted using SPSS's Pearson Correlation, and the outcomes indicate a moderately positive relationship between material control and financial achievement with a Pearson Correlation "R" value of 0.603 (60.30%). Additionally, the "p" value is 0.000, which is lower than 0.01, indicating a 99 percent significant association between inventory management and financial performance. The financial performance of inventory management is impacted by 36.4 percent, as indicated by the R square value of 0.364. This study recommended that XYZ Packaging (Cambodia) Co., Ltd should practice techniques such as the economic order quantity (EOQ) model to order raw materials and reduce spaces for storage, reduce holding costs such as labour, insurance, damages, and spoils. Moreover, the study recommended using a computer-based inventory management system to reduce the risk of mistakes and the potential for fraud. Further, Management should continuously conduct training for employees to help them improve their inventory management skills.