Evolving Production Technologies - Implications for Inventory Ordering Formulations

Document Type

Article

Publication Date

1995

Department

Management and International Business

Abstract

Evolving production technologies are altering the cost structures on which many supporting inventory ordering systems are based; for example, fixed costs compared with variable costs are increasing significantly. Unfortunately, many inventory ordering formulations consider only the variable portions of inventory ordering costs and inventory holding costs. To address this deficiency, departs from traditional categorizations and offers an inventory classification schema based on the functional roles served by the inventory items. Functional roles of inventory include transition, buffer, investment, maintenance, supplies and dead stack. Extending the schema, assesses the implications each functional role has for inventory cost containment, emphasizing the impact of evolving production technologies on inventory ordering policies and their relevance functional roles.

Publication Title

International Journal of Operations and Production Management

Volume

15

Issue

10

First Page

30

Last Page

&

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