Inventory Management Systems
JÖNKÖPING INTERNATIONAL BUSINESS SCHOOL
JÖNKÖPING UNIVE RSITY
IMP ROV ING INV E NTO RY M ANAGEME NT IN SM A LL BU S INESS
A CA SE ST UDY
Master Project in International Logistics and Supply Chain Management Authors: Lining Bai Ying Zhong Tutor: Jönköping Jens Hultman 2008-01
Master Thesis in International Logistics and Supply Chain Management
Title: Authors: Tutor: Date: Subject terms: Improving Inventory Management in Small Business: A Case Study Lining Bai and Ying Zhong
Jens Hultman
2008-01 Supply Chain Management, Inventory Management, Purchasing, IT, Small Business.
Abstract
Introduction: The growth of small business is fast and their impact on the economy is becoming bigger. How to manage the inventory effectively and efficiently often is a challenge for these small businesses. The study took place at HEM-SOL FORSALJNINGS AB, a company involved in gym sports equipment wholesale. For HEM-SOL two inventory problems, stock-out and overstock occur frequently. The company wants to improve its efficiency and is considering a change in the inventory management. Purpose: The purpose of this study is to investigate the reasons behind the inventory management inefficiency in HEM-SOL, and then the proposed managerial suggestions will be presented to deal with the issues. Method: The study is considered as qualitative single-case study. Data collection is mainly through the interviews with the top manager and other staff involved in inventory control operations. Secondary data is retrieved from the information system to provide the annual purchasing and sales report about twenty items using a purposive sampling approach. Data analysis follows the theoretical framework. Conclusion: Small businesses have limited financial resources and bargaining power. Long-distance suppliers, big fluctuation of demand and lack of formalized inventory control system result in HEM-SOL bad performance on inventory management. The authors analyze the collected data and establish a
JÖNKÖPING UNIVE RSITY
IMP ROV ING INV E NTO RY M ANAGEME NT IN SM A LL BU S INESS
A CA SE ST UDY
Master Project in International Logistics and Supply Chain Management Authors: Lining Bai Ying Zhong Tutor: Jönköping Jens Hultman 2008-01
Master Thesis in International Logistics and Supply Chain Management
Title: Authors: Tutor: Date: Subject terms: Improving Inventory Management in Small Business: A Case Study Lining Bai and Ying Zhong
Jens Hultman
2008-01 Supply Chain Management, Inventory Management, Purchasing, IT, Small Business.
Abstract
Introduction: The growth of small business is fast and their impact on the economy is becoming bigger. How to manage the inventory effectively and efficiently often is a challenge for these small businesses. The study took place at HEM-SOL FORSALJNINGS AB, a company involved in gym sports equipment wholesale. For HEM-SOL two inventory problems, stock-out and overstock occur frequently. The company wants to improve its efficiency and is considering a change in the inventory management. Purpose: The purpose of this study is to investigate the reasons behind the inventory management inefficiency in HEM-SOL, and then the proposed managerial suggestions will be presented to deal with the issues. Method: The study is considered as qualitative single-case study. Data collection is mainly through the interviews with the top manager and other staff involved in inventory control operations. Secondary data is retrieved from the information system to provide the annual purchasing and sales report about twenty items using a purposive sampling approach. Data analysis follows the theoretical framework. Conclusion: Small businesses have limited financial resources and bargaining power. Long-distance suppliers, big fluctuation of demand and lack of formalized inventory control system result in HEM-SOL bad performance on inventory management. The authors analyze the collected data and establish a