Determining inventory service support levels in multi-national companies

Taylor, G. Don; Love, Doug M.; Weaver, Miles W. and Stone, James Determining inventory service support levels in multi-national companies. International Journal of Production Economics, 116 (1), pp. 1-11.

Abstract

Multi-national manufacturing companies are often faced with very difficult decisions regarding where and how to cost effectively manufacture products in a global setting. Clearly, they must utilize efficient and responsive manufacturing strategies to reach low cost solutions, but they must also consider the impact of manufacturing and transportation solutions upon their ability to support sales. One important sales consideration is determining how much work in process, in-transit stock, and finished goods to have on hand to support sales at a desired service level. This paper addresses this important consideration through a comprehensive scenario-based simulation approach, including sensitivity analysis on key study parameters. Results indicate that the inventory needs vary considerably for different manufacturing and delivery methods in ways that may not be obvious when using common evaluative tools.

Publication DOI: https://doi.org/10.1016/j.ijpe.2008.05.020
Divisions: Aston Business School > Operations & information management
Engineering & Applied Sciences > Engineering systems & management
Uncontrolled Keywords: service level,product sourcing,global manufacturing,Business, Management and Accounting(all),Management Science and Operations Research,Economics and Econometrics,Industrial and Manufacturing Engineering

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