A Case Study of Inventory Management in a Manufacturing Company in China


In this paper, we focus on inventory management in a manufacturing company in China. This study aims to identify the key factors that influence inventory management practices, investigate efficient and effective inventory management approaches, and examine the impact of supplier cooperation on supply chain improvement. A case study approach is used to identify the key factors that influence inventory management in a factory. Efficient and effective inventory management practices are derived from the case study and may provide practical guidance for foreign manufacturers in China. This study provides a valuable tool for identifying the key factors in inventory management which can be applied to similar problems encountered in actual manufactories.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Anupindi, R., & Bassok, Y. (1998). Approximations for multi-product contracts with stochastic demands and business volume discounts: Single supplier case. IIE Transactions, 30 (8), 723-734.

  • Ballou, R. H. (1998). Business logistics management (4th ed.). London: Prentice-Hall.

  • Chand, S., & Morton, T. E. (1986). Minimal forecast horizon procedures for dynamic lot size models. Naval Research Logistics Quarterly, 33 (1), 111-122.

  • Choi, K., Narasimhan, R., & Kim, S. (2012). Postponement strategy for international transfer of products in a global supply chain: A system dynamics examination. Journal of Operations Management, 30 (3), 167-179.

  • Christopher, M. (2016). Logistics and supply chain management (5th ed.). Harlow: Pearson Higher Education.

  • Coelho, L. C., & Laporte, G. (2015). An optimised target-level inventory replenishment policy for vendor-managed inventory systems. International Journal of Production Research, 53 (12), 3651-3660.

  • Copper, J. C. (1993). Logistics strategies for global businesses. International Journal of Physical Distribution and Logistics Management, 23, 12-23.

  • De Bolt, M. A., & Wassenhove, L. V. (1983). Lot sizes and safety stocks in MRP: A case study. Production and Inventory Management. First Quarter, 1-16.

  • Dudick, T. S., & Cornell, R. (1980). Inventory control for the financial executive. John Wiley & Sons Inc.

  • Federgruen, A., & Tzur, M. (1995). Fast solution and detection of minimal forecast horizons in dynamic programs with a single indicator of the future: Applications to dynamic lot-sizing models. Management Science, 41 (5), 874-893.

  • Fox, M. L. (1996). Integrating vendor-managed inventory into supply chain decision-making. APICS 39th International Conference Proceeding, 126-128.

  • Howard, K. (1984). Inventory management in practice. International Journal of Physical Distribution and Materials Management, 14 (2), 3-36.

  • Jone, S. (1985). The analysis of depth interviews. In R. Walker, (Ed.), Applied Qualitative Research, Gower Pub Co.

  • Khan, M., Jaber, M. Y., Zanoni, S., & Zavanella, L. (2016). Vendor managed inventory with consignment stock agreement for a supply chain with defective items. Applied Mathematical Modelling, 40 (15), 7102-7114.

  • Kim, S. H. (2014). Postponement for designing mass-customized supply chains: Categorization and framework for strategic decision making. International Journal of Supply Chain Management, 3(1), 1-11.

  • Lundin, R. A., & Morton, T. E. (1975). Planning horizons for the dynamic lot size model: Zabel vs. protective procedures and computational result. Operations Analysis, 23 (4), 711-734.

  • Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.

  • Romano, P. (2014). Vendor‐managed inventory. Wiley Encyclopedia of Management.

  • Schwarz, L. B. (1977). A note on the near optimality of ‘5-EOQ worth’ forecast horizons. Operations Research, 25 (3), 533-536.

  • Shaw, E. (1999). A guide to the qualitative research process. Qualitative Market Research: An International Journal. 2 (2), 59-70.

  • Skipworth, H., & Harrison, A. (2004). Implications of form postponement to manufacturing: A case study. International Journal of Production Research, 42 (10), 2063-2081.

  • Southard, P. B. (2001). Extending vendor-managed inventory into alternate supply chains: A simulation analysis of costs and service levels. ETD Collection for University of Nebraska - Lincoln. AAI3016326.

  • Taleizadeh, A. A., Noori-daryan, M., & Cárdenas-Barrón, L. E. (2015). Joint optimization of price, replenishment frequency, replenishment cycle and production rate in vendor managed inventory system with deteriorating items. International Journal of Production Economics, 159, 285-295.

  • Tayur, S., Ganeshan, R., & Magazine, M. (Eds.). (2012). Quantitative models for supply chain management (17). Springer Science and Business Media.

  • Tsay, A., & Lovejoy, W. (1998). Quantity flexibility contracts and supply chain performance. Working Paper, Santa Clara University, Santa Clara, CA.

  • Urban, T. L. (2000). Supply contracts with periodic, stationary commitment. Production and Operations Management, 9 (4), 400-413.

  • Waller, M., Johnson, M. E., & Davis, T. (1999). Vendor-managed inventory in the retail supply chain. Journal of Business Logistics, 20 (1), 183-203.

  • Williams, M. K. (2000). Making consignment-and vendor-managed inventory work for you. Hospital Material Management Quarterly, 21 (4), 59-63.

  • Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A balanced approach. Cengage Learning.


Journal + Issues