The Framework of Selective Inventory Management: Case Study

Abstract:

One of the basic elements of the strategy of inventory management is the selective inventory management (SIM) and production smoothing. The content of the following article is based on qualitative research to examine the usage of SIM in the complexity of present business network environment. The main objective is to identify the most common approaches of SIM, theirs weaknesses and constrains, which in the context of supply network complexity could determine the obtained results. The paper structurally reviews existing methodologies of SIM and synthesizes into a framework for stock keeping unit (SKU) classification. In this article is used exploratory research and interviews. The analytical process of this paper consists of the inductive research approach, which is based on analysis of different types of SIM analysis. Additionally the paper contain case study demonstration, which was based on attributes searching how to vary each types of SIM analysis and how to apply, understand and implement SIM patterns within the specific conditions of present network environment.