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All Journal International Journal of Supply Chain Management
Anthony Vaz
Malaysia University of Science & Technology
Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

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Order frequency as a variable to determine slow moving D items in ABC inventory categorization Anthony Vaz; Anwar Tedjamulja; Akalpita Tendulkar; Premkumar Rajagopal
International Journal of Supply Chain Management Vol 9, No 2 (2020): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

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Abstract

— Many researchers have studied inventory models for deteriorating items that become waste or obsolete such as electronic components, food items and fashion goods [1], but a lot depends on how supply chain managers categorize finished goods and apply manufacturing strategies to overcome slow moving inventory. Process industries excluding pharmaceuticals, account for €2750 billion in revenues globally and inventories make up 56.7% of working capital for these industries [2]. According to Chase [3], Cisco had to write-off $1.2 billion worth of inventory due to holding too much of an item in finished goods. Tesco UK has admitted it had generated 30,000 tonnes of food waste in the first 6 months of 2013 [4]. The Food and Agriculture Organization of the United Nations (FAO) has indicated that about 32 percent of different types of food produced globally is lost or wasted. Supply Chain Managers need to look specifically at how inventory is categorized as order volume used in ABC inventory categorization can lead to items that are decreasing in popularity to be overly stocked. Many researchers have considered multiple variables in inventory categorization but this study aims to reiterate that the order frequency variable can be used to separate popular from non-popular finished goods inventory so that supply chain managers will be able to keep low inventory of such items and apply small batch and/or a fast response manufacturing strategy to reduce slow moving inventory within fast moving consumer goods (FMCG) businesses.
Systematic Journal Review on S & OP Publications and Avenues for Future Research to Support Smart Industries Anthony Vaz; Akalpita Tendulkar; Shaheen Mansori; Premkumar Rajagopal
International Journal of Supply Chain Management Vol 8, No 5 (2019): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

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Abstract

This research paper attempts to highlight the scarcity of articles published in the field of Sales Operations Planning (S OP) in supply chain management. Literatures in leading journals are limited in the area of S OP and there is a need to address this limitation to aid efforts to complement the demand planning process in smart industries.  In 2010, it was recorded that only 15 papers were published and less than a handful of articles were written throughout the mid-2000s. Additionally, within these limited publications, topics have centered on structural components for operational processes rather than the demand planning or S OP process. With the advent of big data, internet of things (IOT) and Industry 4.0, there is a need for more articles to be published to support full supply chain integration.
Small Batch Manufacturing in the Age of Disruption to Reduce Slow Moving, Obsolete and Deteriorating Finished Goods in Fast Moving Consumer Goods Industry Anthony Vaz; Anwar Tedjamulja; Rajendran Narayanasamy
International Journal of Supply Chain Management Vol 11, No 3 (2022): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

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Abstract

The fast-moving consumer goods (FMCG) industry is characterised by many stock keeping units being held in hypermarkets, supermarkets, minimarkets, convenience stores, smaller sundry shops as well as in centralised or decentralised warehouses supplied from batch manufacturing. In the process of manufacturing and distributing a large range of items, a portion of slow-moving items result in obsolete stocks being held. These slow-moving items often sit on shelves for long periods of time and upon reaching their expiry dates, some deteriorate too. In these circumstances, the supply chain manager may decide to dispose or write them off at a loss. This study aims to show how analysis of such inventory and their demand popularity could be used to install small batch capacity, applying a make to order policy in the FMCG industry for non-popular items. Supply chain managers may also transfer finished goods and moving single units of finished goods from an opened carton between retail outlets and warehouses before applying a make when zero policy to reduce and eliminate such waste in supply chains.
Co-Authors Akalpita Tendulkar Akalpita Tendulkar Anwar Tedjamulja Premkumar Rajagopal Premkumar Rajagopal Rajendran Narayanasamy Shaheen Mansori