The impact of factory managed inventory(FMI) on global supply chains

Fumio Tateishi, Masashi Kurahashi, Tadashi Nakamura, Tomoya Mizumoto, Nobuo Nakatsuka, Shigetoshi Sugawa, Akio Nagahira

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Citation (Scopus)

Abstract

This paper is concerned with the comparison of a factory managed inventory (FMI) supply chain to a traditional forecast-based orders supply chain. The particular emphasis of this paper is the impact the FMI structures have on the ''Bullwhip Effect'' generated within the supply chain. We especially focused on the relationship between the sales site and the factory site, and the developed FMI supply chain that the factory manages each sales site's inventory level, the production site inventory level and actual customer demand as a unified integrated system. A comparison of the performance of the FMI system and conventional supply chain system of a global electronics parts company was investigated by present value (PV) analysis using the value of inventories as a variable. The results revealed that FMI greatly contributed to both reduction of the Bullwhip Effect and improvements of the cash flow PV Index.

Original languageEnglish
Title of host publication2010 International Conference on Management and Service Science, MASS 2010
DOIs
Publication statusPublished - 2010
Event2010 International Conference on Management and Service Science, MASS 2010 - Wuhan, China
Duration: 2010 Aug 242010 Aug 26

Publication series

Name2010 International Conference on Management and Service Science, MASS 2010

Other

Other2010 International Conference on Management and Service Science, MASS 2010
CountryChina
CityWuhan
Period10/8/2410/8/26

Keywords

  • Bullwhip
  • Discrete production
  • FMI
  • Forecast-based orders
  • Global
  • Present value

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems and Management

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