On the Effect of Combination of Statistical and Judgemental Stock Control Methods
Abstract: Stock control is the
most important aspect in an inventory system. It determines the safety stock in
order to ensure that products are readily available when the customers require
them. The decision makers in organizations tend to rely on software solution in
obtaining stock control solutions since they have to manage a massive number of
Stock Keeping Units (SKUs). However, managers intervene in the system and use
their judgement to adjust or decide on various quantitative elements. This
research discusses the effects of combination of stock control methods. An
extended database of approximately 1,800 SKUs from an electronics company is
analyzed. Then, a simulation experiment is performed in order to evaluate in a
dynamic fashion what are the effects of applying combined stock control
methods. The findings indicate that the combined method of stock control seems
to improve the performance of the inventory system, especially in reducing
inventory investment.
Author: Inna Kholidasari
Journal Code: jptindustrigg140018
