CHAPTER II - RRL For Inventory

HAPTER II
Review Related Literature
This chapter presents the different ideas from the different idea from the different sources of
information relevant to the study.
Inventory
Effective Inventory Management System in Efficient Supply and Distribution Management in

one of Manufacturer of Foods Seasoning Products in the Philippines
Abstract—Inventory management is one of the significant processes in supply and distribution

management. Inventory stock is one of the important assets of the companies specifically are those
in the manufacturing line. In any situation that there is a problem related to inventory like out-of-
stock, the company’s business process will be disrupted. The out-of-stock situation is the condition
wherein the company cannot fulfill the demand of the customer in time. Therefore, the task of
effective inventory management is to make sure that the quantities of inventories are sufficient
enough to fulfill the demand without overstocking. The main objectives of this paper are to create a
re-ordering system template as the main tool that can be used in replenishing the inventory,
achieving the desired inventory level, and the truckload optimization. The researcher proved that
there’s a significant relationship to link all the components of the reordering system such as the re-
ordering point (ROP), desired inventory level, safety stocks, replenishment cycle, anticipated lead
time, and truckload maximization. This research found that the re-ordering system template can help
to achieve the desired inventory level at sales stations. Also, the paper shows the truckload
optimization model to get the optimal truckload per delivery trip.
Bautista Jr, J. V., & Young, M. N. (2021). “Effective Inventory Management System in Efficient
Supply and Distribution Management in one of Manufacturer of Foods Seasoning Products in
the Philippines”.
https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&as_ylo=2019&q=Effective+Inventory+Management+System+in+Efficien
t+Supply+and+Distribution+Management+in+one+of+Manufacturer+of+Foods+Seasoning+Products+in+the+Philippines+&bt
nG=
Inventory management concepts and technique
Abstract: Inventory management has become one of the key elements of the supply chain
management and can greatly affect the performance of a business. The textile industry is no
exception. Traditional approaches in decision making based on manager instincts and hunches are
no longer enough in the today’s increasingly competitive environment. Small to medium sized family
owned textile businesses are usually prone to this way of thinking. This paper discusses some basic
concepts and techniques for classifying inventory, controlling inventory levels, avoiding stock outs
and increasing customer satisfaction. It also discusses the importance of forecasting demand and
uses the Root Mean Square Error (RMSE) as an effective measure of the forecast error, which later
becomes a basic driver for inventory management. It addresses the Service Level (SL) as a
performance metric and emphasizes on the importance of Safety Stock (SS). Finally, it discusses
the use of the Reorder Point (ROP) as an efficient indicator for triggering production replenishment
and proposes a simple technique for prioritizing production orders.
REDDY, B. A. (2021).” Inventory management concepts and technique.” Journal of

Interdisciplinary Cycle Research. 13(2), p. 202-208.
https://www.researchgate.net/profile/Dr-Amarnath-
Reddy/publication/371011592_Inventory_management_concepts_and_technique/links/646efd98cde97a392931ceb4/Inventory-
management-concepts-and-technique.pdf
Inventory management system of departmental store: a case study

Abstract
The inventory management system is a major concern of any firm, either manufacturer or retailer.
This paper explained research that was conducted in a superstore to analyze its inventory
management system. The methodology is divided into two phases. One is concerned with process
improvement in the inventory management system and the other is concerned with developing an
optimized stock level to minimize the inventory overstock and inventory shortage problems. The
most selling products were sampled, and their data and documentation were conducted in the
research. To develop an optimized stock level, different forecasting methods were used as
alternative approaches and the most appropriate one was selected. Then, the EOQ model is used
to propose a suitable order quantity. Safety stock and reorder level is also designed to manage the
demand and lead time fluctuations. This approach can be used by manufacturing firms, retailers,
distributors, and wholesalers. It will ensure the proper utilization of a company's resources, labor,
and information system. This approach will surely enhance the profit earned by a firm by reducing
the cost incurred in inventory-related activities at the same revenue.
Ansari, K., & Ashraf, S. R. (2022). ‘’Inventory management system of departmental store: a case
study’’. IBA SBS International Conference.
https://ir.iba.edu.pk/sbsic/2022/program/15/
A review of inventory management system at manufacturing organization.

Abstract— now a day inventory of material is most important part of any organization. Inventory
management system is a system for tracking inventory levels, order, sales and deliveries. Inventory
control means the availability of right materials of right quantities. It is a tool for organizing inventory
data that before was generally stored in hard copy form or in spreadsheets. Every component of
inventory is significant and it is essential to manage the inventories. Inventory management system
is made up of several key components such as – Reorder Point, Asset tracking, service
management, Product identification and Inventory optimization. The manufacturing company is
having definite policies for control and supervision of the inventory, but it requires a throughout study
of their guiding principles and systems to a great extent to be acquainted with the inventory
management. The manufacturing organizations often use inventory management system to reduce
their carrying costs. This facilitates the manufacturing process by helping manufacturers efficiently
assemble the tools and parts they need to perform specific tasks. In this paper we study the different
researcher’s papers and find out the best methods and process to control the inventory of
manufacturing organization to reduce the carrying costs and variable costs of products.
Singh, P., & Yadav, T. K. (2019). “A Review of Inventory Management System at Manufacturing
Organization.” IJEAST. 4(6), p. 121-126.
https://www.ijeast.com/papers/122-126,Tesma406,IJEAST.pdf
Improving Inventory Management Policy: Case Study 999 Stationery
Abstract - Inventory management is important part in an organization or company because it can

indirectly affect organization or company profitability. For store such as stationery store that has
major activity to sell and buy product, inventory take an important part, because the amount of
product that they keep can affect cost that they need to bear. Currently, 999 Stationery face
problem in their inventory management, their problem mostly about the high level inventory and
product shortage which result in high cost that they need to bear. The cost they need to bear
include holding cost and shortage cost. If the store keep many products in their warehouse it can
give impact to high holding cost .But, if there is a lack of product stock it will impact to unsatisfied
customer that can lead to the loss opportunity to get the profit from the customer, since the
customer probably will buy the product from different store. Those problem can happen because
the responsible person in store did not have an appropriate method to determine when to order
and how much to order. The methodology used are qualitative such as interview, and quantitative
to calculate the method/tools chosen and see the impact of the method/tools, there will be
comparison between the current inventory policy and proposed inventory policy. The result of this
research are probabilistic model is the most suitable method to determine when to order, and
economic order quantity is the most suitable method to determine how much to order. With the
using of those method 999 Stationery can generate lower cost compared to the current strategy.
Alifah, J. W., & Lestari, Y. D. (2021). Improving Inventory Management Policy: Case Study 999
Stationery. ICORE, 5(1). p. 551-558.
http://www.jp.feb.unsoed.ac.id/index.php/Icore/article/viewFile/1520/1531
A Review on Implementation of Inventory Management Technique in Manufacturing Industry
Abstract- To achieve optimum inventory replenishment is significantly difficult due inherent

uncertainties in demands and supply which resulting in loss of sales or keeping excessive
inventories. An unkempt inventory can take up to one-third of an organization’s annual investment.
Therefore, in order to compete with invariably erratic demands, it is not only challenging to develop
an intelligent system to maintain and control an optimum level of inventory but has also become
mandatory.
Jain, M. T. S. P., & Mishra, T. (2021). ‘’A Review on Implementation of Inventory Management
Technique in Manufacturing Industry’’. IJSRET. 7(4), p.2513-2514.
https://ijsret.com/wp-content/uploads/2021/07/IJSRET_V7_issue4_568.pdf

CHAPTER II - RRL For Inventory

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HAPTER II

Review Related Literature

Effective Inventory Management System in Efficient Supply and Distribution Management in

Abstract—Inventory management is one of the significant processes in supply and distribution

Inventory management concepts and technique

REDDY, B. A. (2021).” Inventory management concepts and technique.” Journal of

Inventory management system of departmental store: a case study

A review of inventory management system at manufacturing organization.

Improving Inventory Management Policy: Case Study 999 Stationery

Abstract - Inventory management is important part in an organization or company because it can

A Review on Implementation of Inventory Management Technique in Manufacturing Industry

Abstract- To achieve optimum inventory replenishment is significantly difficult due inherent

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