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| Content Provider | IEEE Xplore Digital Library |
|---|---|
| Author | Happonen, Ari Salmela, Erno |
| Copyright Year | 2010 |
| Description | Author affiliation: Lappeenranta University of Technology, Faculty of Technology Management, Lappeenranta, Finland (Happonen, Ari; Salmela, Erno) |
| Abstract | This study examined knowledge enhancement model, in which a logistics service provider (LSP) could provide dynamic warehouse parameter management and update service for their customers in the future. The paper is targeted to reveal case data and future directions about logistics service of dynamic inventory management. This type of a case based research data about 4PL model cases was one of the research gaps revealed by the literature review done by Selviaridis and Spring (2007). Dynamic inventory management service itself is one of those new service models logistics service providers can offer in the future. The aim of the study is to research the dynamic inventory management model and tactical role of the LSP in 4PL service concept. The research data has been collected trough interviews of company owners, logistics managers, project leaders and logistics consults and also from a inventory data based case study. The literature review focused on scientific journals of logistics area. The study revealed new business arrangements, operational concepts and financial aspects that a LSP could offer for their customers on future, through dynamically inventory parameter management model. This new concept will allow providing of strategic services, such as temporary funding of components on stock (based on demand analysis and projection and also based on forecast on base material future trends), continuous development of the supply chain and complete new exception management capabilities. The model allows detailed analysis of inventory items consumption patterns (uncertainty on demand on both, time and quantity dimensions). Also analysis of criticality of the item availability for the production and the value of the item is considered when the model is applied to an inventory on new parameter definition process. The case is considered a good example how demanding and information analytical LSP services are not limited only for large size companies and service providers and how it is possible for a small company to grow with the LSP and subcontractors in case of carefully designed supply chain and inventory buffers. From the generalization point of view the study is limited as the study concentrated only on a case. The presented model can give a small company a new potential to grow rapidly as some of the traditional financial inventory limitations do not apply to service model. The LSP can be identified as an enabler of growth and a demand and supply chain synchronizer. Trough Dynamic inventory management a large company may save a huge amount of their assets as the inventory buffers are fitted to projected demand, which gives the company more precise inventory management capabilities. These capabilities are enhanced with data and parameter visualization tools that give the customer clearly defined outlook on their inventories. The studied case and dynamic inventory parameter concept revealed a new kind of a service model for LSP. Trough the service, LSP can have a tactical supply chain manager role in the given business environment. Dynamic inventory management model can provide new revenues for both parties that encourage both of them to improve the collaboration in the future even further. Dynamic warehouse management model allows demand synchronized inventory parameter update process using fast re-parameterization process based on real inventory demand data. The model is based on novel idea of using both long and short time periods history data to anticipate the future item level demand and its variations. |
| Starting Page | 1 |
| Ending Page | 26 |
| File Size | 706946 |
| Page Count | 26 |
| File Format | |
| ISBN | 9781424482030 |
| Language | English |
| Publisher | Institute of Electrical and Electronics Engineers, Inc. (IEEE) |
| Publisher Date | 2010-07-18 |
| Publisher Place | Thailand |
| Access Restriction | Subscribed |
| Rights Holder | PICMET (Portland Intl conf on Manage |
| Subject Keyword | Supply chains Inventory management Companies Materials Data models |
| Content Type | Text |
| Resource Type | Article |
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