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A Case Study of Supply Chain Management in a Manufacturing Company in China

Author

Listed:
  • Luo Renfei

    (University of Macau, Macau)

  • Huang Jiedan

    (University of Macau, Macau)

  • Lee Jimmy

    (University of Macau, Macau)

  • Pun Philip

    (University of Macau, Macau)

Abstract

How to manage inventory is becoming an increasingly crucial issue for most manufacturing companies. R&D, the pseudonymous case study considered here, is a foreign direct investment (FDI) company engaged in producing electronic components. As the prices of raw materials and operation costs increased, R&D was challenged to maintain a smooth relationship among several factors: level of inventory, customer satisfaction and production efficiency. This paper first discusses the key factors that affect R&D’s inventory level. It then combines recent supply chain management theories and quantitative data into a framework for identifying how R&D might determine optimal ordering policies and strategies to reduce overall costs, while at the same time satisfying customers in terms of service.

Suggested Citation

  • Luo Renfei & Huang Jiedan & Lee Jimmy & Pun Philip, 2018. "A Case Study of Supply Chain Management in a Manufacturing Company in China," Nang Yan Business Journal, Sciendo, vol. 6(1), pages 1-20, June.
    • Handle: RePEc:vrs:nybujo:v:6:y:2018:i:1:p:1-20:n:1
    DOI: 10.2478/nybj-2018-0001
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    References listed on IDEAS

    as
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    2. Hendry, L. C. & Kingsman, B. G., 1989. "Production planning systems and their applicability to make-to-order companies," European Journal of Operational Research, Elsevier, vol. 40(1), pages 1-15, May.
    3. Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
    4. Gérard P. Cachon & Marshall Fisher, 2000. "Supply Chain Inventory Management and the Value of Shared Information," Management Science, INFORMS, vol. 46(8), pages 1032-1048, August.
    5. Jack F. Williams, 1981. "Heuristic Techniques for Simultaneous Scheduling of Production and Distribution in Multi-Echelon Structures: Theory and Empirical Comparisons," Management Science, INFORMS, vol. 27(3), pages 336-352, March.
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    More about this item

    Keywords

    Inventory management; safety stock; case study; VMI;
    All these keywords.

    JEL classification:

    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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