Strategic management of stocks

Abstract

This study shows the usefulness of a strategic and systemic vision for inventory management, avoiding partial optimizations. The suggested approach is to identify conflicts of interest connected with stock, resulting from the work of the areas of operations, finance and marketing, and finding out how to optimize the company's overall performance. A numerical example is used to evaluate operating performance (fill rate, turnover, mean stock, safety stock) and economic performance (partial and total costs) in various scenarios, in which, at first, partial visions predominate. After this, based on a systemic vision, there is a search for more suitable solutions for the company as a whole. Finally, sensitivity analyses are presented. They indicate possible ways of improving overall performance, even if this is achieved at the expense of local indicators.