Pdf risk pooling, a technique to manage risk in supply chain. Therefore the system with risk pooling has less overall inventory and is thus cheaper to operate with the same service level. Inventory management and risk pooling pdf free download. As obscured information and asynchronous actions, the bullwhip effect suggests that the variability of orders increases as we move upstream in the military. Inventory pooling with strategic consumers harvard business. The most important concept in supply chain management risk pooling risk pooling. Inventory management and risk pooling free download as pdf file. Risk poolingii thus, if each retailer maintains separate inventory and safety stock, a higher level of inventory has to be maintained than if the inventory and safety stock are pooled. Chapter 2 inventory management and risk pooling 22 case. Inventory management and risk pooling inventory profit. The aim of supply chain inventory management is to optimize the inventories and. Inventory management and risk pooling free download as powerpoint presentation.
Logistic network consisted of 20,000 supplier plants, 3 parts plants, 31 assembly plants, and 11,000 dealers. Analysis of the risk pooling to inventory management for a three. Risk pooling, a technique to manage risk in supply chain management conference paper pdf available may 2016 with 2,781 reads how we measure reads. Inventory management, supply contracts and risk pooling. The perfect formula for determining the right amount of. Chapter 3 inventory management and risk pooling case jam electronics. The perfect formula for determining the right amount of inventory for years, supply chain executives have asked how can they reduce inventory without affecting customer service levels or shifting cost to other supply chain partners, and the answer could be a new inventory management strategy. Pdf risk pooling, a technique to manage risk in supply. Decentralized systems practical issues in inventory management inventory where do we hold inventory. The most important concept in supply chain management. Service level crisis jam electronics is a korean manufacturer of products such. Inventory management plays an important role to achieve higher service level but if not managed well, it can lead to exceedingly high costs and at the same time. Placing risk pooling in the supply chain, business logistics. September, 2011 abstract the practice of inventory pooling serving two or more separate markets using a common inventory stockis extensively studied in operations management.
Other benefits of cooperation such as the risk pooling are out of the scope of this paper. Steel works background of case and intent overview of business what does data tell you about specialty. Inventory pooling under heavytailed demand stanford university. Inventory management and risk pooling profit accounting. Risk pooling has been studied extensively in the operations management literature as the basic driver behind strategies such as transshipment, manufacturing. Pdf chapter 2 inventory management and risk pooling 22. A statistical concept that suggests that demand variability is reduced if one can aggregate demand, for example, across locations, across products or even across time. On the benefits of risk pooling in inventory management. Methods of risk pooling in business logistics and their.