Integrative purchasing and inventory control at sawnwood retailer – case study

Philip Hedenstierna, Per Hilletofth and Olli-Pekka Hilmola

International Journal of Procurement Management, 2011, vol. 4, issue 2, 139-155

Abstract: Purchasing order methods and inventory control are vital elements in fulfilling customer orders and building internal performance; this is particularly the case in retailing operations. In this manuscript, we develop different scenarios for various order methods for a wood retailer, where the performance of the different methods is evaluated through simulation, whereupon the fit between environments and methods is compared. Our results indicate that only simple environments follow analytical cost and service level calculations, while increasing complexity increases the synchronisation need between forecasts and reordering methods. In our research we also compare different ordering methods, and find that while the reorder point method is the most robust solution from the retailer's perspective, it could lead to distortion within entire wood supply chain.

Keywords: purchasing order methods; inventory control; simulation; wood retailing; case study; wood supply chains; supply chain management; SCM. (search for similar items in EconPapers)
Date: 2011
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