The trade off of the stock strategy: ce ntralization or decentralization. A case study of the consume r goods company

• Published in: IISE Annual Conference. Proceedings p. 1
• Main Authors: Boschi, Alexandre Arnaldo, Borin, Rogério, dos Santos, Renato Marcio, Mollo, Mario, Batocchio, Antonio
• Format: Journal Article
• Language: English
• Published: Norcross Institute of Industrial and Systems Engineers (IISE) 01.01.2012
• Subjects: Case studies; Competition; Competitive advantage; Consumer goods; Costs; Customer services; Decentralization; Distribution; Engineering; Factories; Inventory; Logistics; R&D; Research & development; Stocks; Studies; Supply chain management

Identify the best strategy for managing stocks is one of the greatest difficulties for companies. The centralization of inventories can be a benefit when we analyze the direct costs incurred for storage and handling however, the level of service can be penalized. The decentralization of inventories in supply chains of products with low added value can be an answer to the balance of cost vs. service level. The article discusses a case study of a company active in the retail market with products of low added value and needs to meet demand in a country of continental dimensions while maintaining the necessary balance in question cost and service level. [PUBLICATION ABSTRACT]