Title: Integrative purchasing and inventory control at sawnwood retailer – case study

Authors: Philip Hedenstierna, Per Hilletofth, Olli-Pekka Hilmola

Addresses: Logistics Research Centre, University of Skovde, P.O. Box 408, SE-541 28 Skovde, Sweden. ' Logistics Research Centre, University of Skovde, P.O. Box 408, SE-541 28 Skovde, Sweden. ' Lappeenranta University of Technology, Kouvola Research Unit, Prikaatintie 9, FIN-45100 Kouvola, Finland; University of Skovde, Sweden

Abstract: Purchasing order methods and inventory control are vital elements in fulfilling customer orders and building internal performance; this is particularly the case in retailing operations. In this manuscript, we develop different scenarios for various order methods for a wood retailer, where the performance of the different methods is evaluated through simulation, whereupon the fit between environments and methods is compared. Our results indicate that only simple environments follow analytical cost and service level calculations, while increasing complexity increases the synchronisation need between forecasts and reordering methods. In our research we also compare different ordering methods, and find that while the reorder point method is the most robust solution from the retailer|s perspective, it could lead to distortion within entire wood supply chain.

Keywords: purchasing order methods; inventory control; simulation; wood retailing; case study; wood supply chains; supply chain management; SCM.

DOI: 10.1504/IJPM.2011.038896

International Journal of Procurement Management, 2011 Vol.4 No.2, pp.139 - 155

Available online: 05 Mar 2011 *

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