Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 60 , 05 January 2024


Open Access | Article

Research on the Inventory Management in the Modern Business

Xiangyu Cheng * 1
1 University of Pittsburgh

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 60, 1-8
Published 05 January 2024. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Xiangyu Cheng. Research on the Inventory Management in the Modern Business . AEMPS (2024) Vol. 60: 1-8. DOI: 10.54254/2754-1169/60/20231247.

Abstract

Inventory management plays a pivotal role in modern business operations, impacting operational efficiencies, financial security, and competitive advantages. This essay explores the multidimensional field of inventory management, delving into seminal research articles. It shows how accounting methods and strategic decision-making interact, shaping operational pathways. Operations research guides inventory management strategies' effectiveness assessment. Creating a culture of continuous improvement based on empirical observations is equally crucial. Innovations, like structured Markov Decision Processes (MDPs) with convex cost functions, bridge theory and real-world applications. The essay also examines forecasting errors' implications when relying too heavily on predictions, highlighting optimal control techniques as resilience tools in volatile environments. Contemporary inventory strategies balance precision and adaptability, focusing on supply/demand synchronization. Empirical case studies exemplify efficient responses to market changes. Variability management in inventory frameworks offers insights into resource allocation across diverse product lines. Lastly, the essay deconstructs the strategic implications of asymmetric sales changes on inventory strategies. In a globalized, technologically dynamic age with shifting market forces, prudent inventory management is imperative. This essay showcases its significance with empirical wisdom and academic rigor, illuminating quantitative precision, strategic insight, and operational excellence in modern business environments.

Keywords

Inventory management, strategic decision-making, operations research

References

1. Biddle, Gary, C. (1980). Accounting Methods and Management Decisions: The Case of Inventory Costing and Inventory Policy. Journal of Accounting Research, 18, 235–80.

2. Silver, Edward, A. (1981). Operations Research in Inventory Management: A Review and Critique. Operations Research, 29, 628–45.

3. Agrawal, Shipra. (2022). Learning in Structured MDPs with Convex Cost Functions: Improved Regret Bounds for Inventory Management. Operations Research, 70, 1646–64.

4. Barrow, D.K., and Nikolaos, K. (2016). Distributions of Forecasting Errors of Forecast Combinations: Implications for Inventory Management. International Journal of Production Economics, 177, 24–33.

5. Wagner, Michael, R. (2018). Robust Inventory Management: An Optimal Control Approach. Operations Research, 66, 426–47.

6. Song, J.S., et al. (2022). Capacity and Inventory Management: Review, Trends, and Projections. Manufacturing & Service Operations Management, 22, 36–46.

7. Nenes, G., et al. (2010). Inventory Management of Multiple Items with Irregular Demand: A Case Study. European Journal of Operational Research, 205, 313–24.

8. Hwang, I., et al. (2021). Asymmetric Inventory Management and the Direction of Sales Changes. Contemporary Accounting Research, 38, 676–706.

9. An, R., et al. (2023). Do Key Audit Matters Affect Operating Activities? Evidence from Inventory Management. Abacus (Sydney), 59, 300–399.

10. Fay, S., and Xie, J.H. (2015). Timing of Product Allocation: Using Probabilistic Selling to Enhance Inventory Management. Management Science, 61, 474–84.

11. Tokgöz, P. (2023). Integrated Reverse Logistics: Case Study of a Product Take-Back Program. Working Paper.

12. Renaldo, N. (2022). Benefits and Challenges of Technology and Information Systems on Performance. Journal of Applied Business and Technology, 3(3), 302-305.

13. Ahl, A., Goto, M., Yarime, M., Tanaka, K., and Sagawa, D. (2022). Challenges and opportunities of blockchain energy applications: Interrelatedness among technological, economic, social, environmental, and institutional dimensions. Renewable and Sustainable Energy Reviews, 166, 112623.

14. Caputo, F., Fiano, F., Riso, T., Romano, M., and Maalaoui, A. (2022). Digital platforms and international performance of Italian SMEs: an exploitation-based overview. International Marketing Review, 39(3), 568-585.

15. Unhelkar, B., Joshi, S., Sharma, M., Prakash, S., Mani, A. K., and Prasad, M. (2022). Enhancing supply chain performance using RFID technology and decision support systems in the industry 4.0–A systematic literature review. International Journal of Information Management Data Insights, 2(2), 100084.

16. Javaid, M., Haleem, A., Singh, R. P., and Suman, R. (2022). Enabling flexible manufacturing system (FMS) through the applications of industry 4.0 technologies. Internet of Things and Cyber-Physical Systems, 2, 49-62.

17. Mashayekhy, Y., Babaei, A., Yuan, X. M., and Xue, A. (2022). Impact of Internet of Things (IoT) on inventory management: A literature survey. Logistics, 6(2), 33.

18. Mishra, R., Singh, R. K., & Subramanian, N. (2023). Exploring the relationship between environmental collaboration and business performance with mediating effect of responsible consumption and production. Business Strategy and the Environment, 32(4), 2136-2154.

19. Sweeney, K., Evers, P. T., Duan, Y., and Windle, R. (2023). Trade-offs between operational performance and sales in a retail environment: The simultaneous impact of product variety on inventory levels, product availability, and sales. Journal of Business Logistics.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).

Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-211-4
ISBN (Online)
978-1-83558-212-1
Published Date
05 January 2024
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/60/20231247
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated