Consolidation effects and inventory portfolios

Peter F. Wanke

Transportation Research Part E: Logistics and Transportation Review, 2009, vol. 45, issue 1, 107-124

Abstract: This paper presents a formal analysis of the consolidation effect in a wider perspective. While demonstrating that the stock saving structure depends on the interaction between the coefficient of variation of demand and the ratio between inventory ordering and holding costs, this research indicates that the ratio between the standard deviations of lead time at potential facilities is the key variable for consolidation. Sensitivity analyses are also performed to address common managerial issues, which can arise during the consolidation decision, such as the impact on total costs and the assumption of uncorrelated demands.

Keywords: Inventory; management; Consolidation; effect; Inventory; portfolio (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554508000811
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:45:y:2009:i:1:p:107-124

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().