Journal article
The degree of inventory centralization for food manufacturers
Implement Consulting Group1
Danish National Archives2
Afdelingen for Produktionsudvikling, Center for Bachelor of Engineering Studies, Technical University of Denmark3
Center for Bachelor of Engineering Studies, Technical University of Denmark4
Engineering Design and Product Development, Department of Mechanical Engineering, Technical University of Denmark5
Department of Mechanical Engineering, Technical University of Denmark6
For food manufacturers, limited shelf-lives and ‘freshness’ requirements increase inventory holding costs. Accuracy in choosing the most advantageous degree of inventory centralization (MADIC) is therefore central for competitiveness. While extant research contains several industry-generic factors that influence centralization decisions, influencing factors for food manufacturers, in particular, is under-explored.
This paper identifies the factors that influence the MADIC for food manufacturers and develops a method that integrates all factors for MADIC-determination. The study examines a single case facilitating deep-dives into unknown areas. Results show nine factors of which three are specific to food manufacturing.
Furthermore, the paper details how practitioners can determine a MADIC-score on a 1–100 scale for their particular operations. While food manufacturing inventory centralization literature is scarce, this paper contributes to a holistic study of multiple relevant factors and a method that integrates all factors into one result.
Language: | English |
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Publisher: | Springer Berlin Heidelberg |
Year: | 2019 |
Pages: | 21-32 |
Journal subtitle: | Research and Development |
ISSN: | 18637353 and 09446524 |
Types: | Journal article |
DOI: | 10.1007/s11740-018-00872-1 |
ORCIDs: | 0000-0002-7226-4713 , 0000-0003-3722-7017 and Larsen, Samuel Brüning |
Case study research Centralization Decentralization Food manufacturing Inventory management Multicriteria decisions
Engineering Industrial and Production Engineering Production