Jurnal Internasional

International Journal Logistic Management: Inventory holding costs measurement: a multi-case study

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Abstract
Purpose – Logisticians in the worldwide industry are frequently faced with the problem of measuring
the total cost of holding inventories with simple and easy-to-use methodologies. The purpose of this
paper is to look at the problem, and in particular illustrate the inventory holding cost rate computation,
when different kind of warehousing systems are applied.
Design/methodology/approach – A multiple case study analysis is here developed and supported
by a methodological framework directly derived from the working group discussions and
brainstorming activities. Two different field of application are considered: one related to five
companies with manual warehousing systems operating with traditional fork lift trucks; the other
is among five companies operating with automated storage/retrieval systems (AS/RS) to store
inventories.
Findings – The multi-case study helps to understand how the holding cost parameter is currently
computed by industrial managers and how much the difference between manual and automated/
automatic warehousing systems impacts on the inventory cost structure definition. The insights from
the ten case studies provide evidence that the kind of storage system adopted inside the factory can
impact on the holding cost rate computation and permit to derive important considerations.
Practical implications – The final aim of this work is to help industrial engineers and logisticians
in correctly understanding the inventory costs involved in their systems and their cost structure.
In addition, the multi-case analysis leads to considerations, to be applied in different industrial
contexts. As other industrial applications are identified, they may be analyzed by using the presented
methodology, and with aid from the data from this paper.
Originality/value – The relevance of this work is to help industrial engineers and logisticians in
understanding correctly the inventory costs involved in their logistics systems and their cost structure.
In addition, the multi-case analysis lead to interesting final considerations, easily to be applied in
different industrial contexts. As other industrial applications are identified, they may be analyzed by
using the methodology and extrapolating the data from this paper.
Keywords Inventory management, Total cost, Warehousing
Paper type Case study

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Ketersediaan

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Informasi Detail

Judul Seri

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No. Panggil

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Penerbit

: Emerald Insight., 2014

Deskripsi Fisik

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Bahasa

English

ISBN/ISSN

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Klasifikasi

NONE

Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

Vol. 25 Iss 1 pp. 109 - 132

Subjek

Jurnal Logistik

Info Detail Spesifik

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Pernyataan Tanggungjawab

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Versi lain/terkait

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