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http://dx.doi.org/10.11627/jkise.2016.39.4.015

A Study on the Inventory Cost Estimation Criteria Considering Supply Chain Characteristics of a Electronic Product Manufacturer  

Nam, Jung-Hoon (Graduate School of Management Consulting, Hanyang University)
Hwang, Seung-June (Department of Business Administration, Hanyang University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.39, no.4, 2016 , pp. 15-25 More about this Journal
Abstract
SCM activities in a company are considered as total innovation through synchronizing supply and demand while maintaining appropriate inventory level and reducing the business operating costs. Until now, even several researches are carried out on the SCM performance of the companies which have introduced and been operating SCM, the research on the cost analysis for the inventory which occurs frequently on supply chain is still insufficient. Especially, for the electronics industry in which the product depreciation is sharp caused by the short product life cycle and the complexity of distribution channels, even the inventory related costs are a major factor in business management, since the current estimated criteria of inventory costs are limited to the interest and maintenance management costs, the criteria do not reflect the total influence of the product depreciation and lost opportunity cost which are related to the business management. Furthermore, even though the rapid price drops of the distributor inventory caused by the frequent new model launch can be covered by the product manufacturers, the scale of total costs related to the inventory has not been conceived because the price compensation is traditionally considered as a market costs. In this research, we analyzed the inventory characteristics of electronics industry in which the price depreciation happens frequently, newly defining the estimated criteria of the product total inventory cost which includes price depreciation from the product manufacturers' view. Finally we focus on the case study of a representative electronics company and verify the scale of the influence on management performance.
Keywords
SCM; Inventory Cost; SCM Performance; Electronics Industry Supply Chain;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
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