Title: Flexible supply capability driving total inventory reduction: an analysis of Omron Healthcare

Authors: Mizuki Kobayashi; Junjiro Shintaku; Daiki Kato

Addresses: Graduate School of Economics, The University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo, 113-0033, Japan ' Manufacturing Management Research Centre, Graduate School of Economics, The University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo, 113-0033, Japan ' Investment Banking Business Unit, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Yebisu Garden Place Tower, 4-20-3 Ebisu, Shibuya-ku, Tokyo, 150-6017, Japan

Abstract: This study analyses total inventory from multiple perspectives, meaning from the perspective of each party involved from the upstream to the downstream, and investigates how to reduce total inventory using Omron Healthcare as a case study. We conduct an analysis on its supplier, production and sales departments, and distributor. Through the case study, we clarify that companies need successful supply chain integration in order to achieve a reduction of total inventory. Requisites for such integration include goal sharing among parties and using a mixture of different production systems with a high level of production capability. Most importantly, we suggest that a flexible upstream supply capability influences downstream activities (i.e., order policy).

Keywords: total inventory reduction; flexible supply capability; production systems; production capability; Omron Healthcare; supply chain integration; goal sharing; upstream; downstream; supply chain management; SCM; case study.

DOI: 10.1504/IJPQM.2015.067767

International Journal of Productivity and Quality Management, 2015 Vol.15 No.2, pp.268 - 284

Available online: 15 Feb 2015 *

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