Term paper abstract
Abstract: An Analysis of the Perpetual and Periodic Inventory Review Systems
MANGT, Spring
Instructor: Dr. C.
I. ABSTRACT
There are two focal inventory control systems that fall under Supply Chain Management: the perpetual review system and the periodic review system. The perpetual review system helps control inventory management by way of tracking the inventory amount on a continuous basis. There is usually a reorder point calculated that when inventory dips below a certain level, a new order is placed to increase the on-hand inventory. The periodic review system is set up so that after a certain time interval has passed, inventory is reviewed and an order is placed at the end in varying amounts.
This report will compare and contrast the two inventory systems while also looking at their pros and cons. A section of the study will review other hybrid review systems, usually a combination of the perpetual and periodic review system. The bullwhip effect will also be discussed and put into context of how it affects inventory management. Application of the inventory review systems in different industries will be examined as to which is used most often and why.
II. OUTLINE OF THE PAPER
1. Introduction
1.1. General definitions of the inventory review systems
1.2. Summary and purpose of the paper
2. Overview of Perpetual and Periodic Inventory Review Systems
2.1. Perpetual Review System
2.2. Periodic Review System
2.3. Bullwhip Effect and Inventory Management
3. Compare and Contrast the Inventory Review Systems
3.1. Pros and Cons
4. Hybrid Inventory Review Systems
5. Application of Inventory Review Systems in Different Industries
5.1. Retail
5.2. Food
5.3. Technology
6. Conclusions
6.1. Summarize the findings of this paper
III. SELECTED REFERENCES
(1) Kianfar, S., Saeidi, A., Esfahani, N.N., Akbari, R. (2008) “ Measuring the bullwhip effect in order-up-to policies with continuous and
MANGT, Spring
Instructor: Dr. C.
I. ABSTRACT
There are two focal inventory control systems that fall under Supply Chain Management: the perpetual review system and the periodic review system. The perpetual review system helps control inventory management by way of tracking the inventory amount on a continuous basis. There is usually a reorder point calculated that when inventory dips below a certain level, a new order is placed to increase the on-hand inventory. The periodic review system is set up so that after a certain time interval has passed, inventory is reviewed and an order is placed at the end in varying amounts.
This report will compare and contrast the two inventory systems while also looking at their pros and cons. A section of the study will review other hybrid review systems, usually a combination of the perpetual and periodic review system. The bullwhip effect will also be discussed and put into context of how it affects inventory management. Application of the inventory review systems in different industries will be examined as to which is used most often and why.
II. OUTLINE OF THE PAPER
1. Introduction
1.1. General definitions of the inventory review systems
1.2. Summary and purpose of the paper
2. Overview of Perpetual and Periodic Inventory Review Systems
2.1. Perpetual Review System
2.2. Periodic Review System
2.3. Bullwhip Effect and Inventory Management
3. Compare and Contrast the Inventory Review Systems
3.1. Pros and Cons
4. Hybrid Inventory Review Systems
5. Application of Inventory Review Systems in Different Industries
5.1. Retail
5.2. Food
5.3. Technology
6. Conclusions
6.1. Summarize the findings of this paper
III. SELECTED REFERENCES
(1) Kianfar, S., Saeidi, A., Esfahani, N.N., Akbari, R. (2008) “ Measuring the bullwhip effect in order-up-to policies with continuous and
References: (1) Kianfar, S., Saeidi, A., Esfahani, N.N., Akbari, R. (2008) “ Measuring the bullwhip effect in order-up-to policies with continuous and periodic review: A system dynamics simulation approach”, Proceedings of International Conference on Risk Management and Engineering Management, pp. 24-29. (2) Silver, E.A., Naseraldin, H., Bischak, D.P. (2009) “Determining the reorder point and order-up-to-level in a periodic review system so as to achieve a desired fill rate and a desired average time between replenishments” Journal of the Operational Research Society, Vol. 60, No. 9, pp. 1244-1253. (3) Al-Hawari, T., Ahmed, A., Khrais, S., Mumani, A. (2013) “Impact of assignment, inventory policies and demand patterns on supply chain performance” International Journal of Simulation Modelling” Vol. 12, No. 3, pp. 164-177 (4) Lee, Hau L., Billington, Corey. (1992) “Managing Supply Chain Inventory Pitfalls and Opportunities” MIT Sloan Management Review (5) Ingram, David. “Difference Between Perpetual and Periodic Inventory System” http://smallbusiness.chron.com/difference-between-perpetual-periodic-inventory-system-3224.html (6) Karaesmen, F. and Gupta, S. M. (1995) "A Comparison of Continuous versus Periodic Review of Order Levels to Control a Make-to-Order Production System", Proceedings of the 1995 Northeast Decision Sciences Institute Conference, 413-415.