Dynamic ABC Analysis For Assortment Management In 3PL

• Autorzy: Mariusz Kmiecik
• Języki publikacji: EN

Abstrakty

EN

Purpose: The purpose of this article is to present the impact of the developed dynamic ABC tool on inventory management within the operations of a third-party logistics (3PL) company.

Design/methodology/approach: The research focused on designing the dynamic ABC tool and subsequently using it in a case study involving 52 customers for whom a 3PL logistics operator provides services. The customers were grouped into categories such as food, nonfood, pharma, and other, and the study encompassed 10 physical depots located in Poland and the Czech Republic.

Findings: The implementation of the dynamic ABC tool will influence the inventory management of the 3PL company. Furthermore, the dynamic ABC tool performs similarly under various conditions for different types of customers, which could indicate its attributes related to universality of application.

Research limitations/implications: The main limitations of the study are the p-value results from the conducted correlation analysis, suggesting that alternative tests should be considered for correlations. Additionally, the conducted quantitative studies should, in the author's opinion, be complemented by a thorough qualitative analysis of the described phenomena.

Originality/value: The presented results provide a significant contribution to understanding the impact of a dynamic SKU classification approach on inventory management in the context of a logistics operator. Through literature analysis, it can be observed that traditional ABC methods primarily rely on historical data, limiting their flexibility. In this context, dynamic ABC analysis, combining classification with predictive data analysis, could serve as a valuable tool for enhancing inventory management efficiency.(original abstract)

Słowa kluczowe

EN

Activity Based Costing (ABC); Inventory management; Logistics; Logistics in supply chain

PL

Rachunek kosztów działań; Zarządzanie zapasami; Logistyka; Logistyka w łańcuchu dostaw

• Czasopismo: Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska
• Rocznik: 2023
• Numer: z. 189 Współczesne zarządzanie = Contemporary management
• Strony: 269--295

Twórcy

autor

Mariusz Kmiecik

• Silesian University of Technology, Poland

Bibliografia

• 1. Abbas Shojaie, A., Soltani, A.R., Soltani, M.R. (2016). A fuzzy integrated approach for evaluating third-party logistics. International Journal of Modeling and Optimization, 6(4), 206.
• 2. Abdi, H. (2007). The Kendall rank correlation coefficient. Encyclopedia of Measurement and Statistics. Sage. Thousand Oaks, CA, 508-510.
• 3. Abdolazimi, O., Esfandarani, M.S., Shishebori, D. (2021a). Design of a supply chain network for determining the optimal number of items at the inventory groups based on ABC analysis: a comparison of exact and meta-heuristic methods. Neural Computing and Applications, 33, 6641-6656.
• 4. Abdolazimi, O., Shishebori, D., Goodarzian, F., Ghasemi, P., Appolloni, A. (2021b). Designing a new mathematical model based on ABC analysis for inventory control problem: A real case study. RAIRO-operations research, 55(4), 2309-2335.
• 5. Ajakaiye, O.I. (2012). The Role of Logistics Service Providers in the Logistics Firms' Supply Chain.
• 6. Al-dulaime, W., Emar, W. (2020). Analysis of Inventory Management of Laptops Spare Parts by Using XYZ Techniques and EOQ Model-A Case Study. Journal of Electronic Systems, Vol. 10(1), 1.
• 7. Amer, H.Y., Jawad, M.K. (2023). Inventory Analysis Using the ABC-Ved Matrix-Applied Research in Al-Zawraa State Company. International Journal of Professional Business Review, 8(5), e01508-e01508.
• 8. Andrade, C. (2019). The P value and statistical significance: misunderstandings, explanations, challenges, and alternatives. Indian Journal Of Psychological Medicine, 41(3), 210-215.
• 9. Arun, K., Yildirim Ozmutlu, S. (2022). Narratives of environmental munificence of 3PL firms on the relationship between dynamic capabilities, strategic management and organizational performance. Journal of Strategy and Management, 15(1), 96-118.
• 10. Asana, I.M.D.P., Radhitya, M.L., Widiartha, K.K., Santika, P.P., Wiguna, I.K.A.G. (2020). Inventory control using ABC and min-max analysis on retail management information system. Journal of Physics: Conference Series, Vol. 1469, No. 1, p. 012097. IOP Publishing.
• 11. Baruffaldi, G., Accorsi, R., Manzini, R., Ferrari, E. (2020). Warehousing process performance improvement: a tailored framework for 3PL. Business Process Management Journal, 26(6), 1619-1641.
• 12. Beheshti, H.M., Clelland, I.J., Harrington, K.V. (2020). Competitive advantage with vendor managed inventory. Journal of Promotion Management, 26(6), 836-854.
• 13. Bhattacharya, A., Sarkar, B., Mukherjee, S.K. (2007). Distance-based consensus method for ABC analysis. International Journal of Production Research, 45(15), 3405-3420.
• 14. Brown, C.E. (1998). Coefficient of variation. In: Applied multivariate statistics in geohydrology and related sciences (pp. 155-157). Berlin/Heidelberg: Springer.
• 15. Ceylan, Z., Bulkan, S. (2017). Drug inventory management of a pharmacy using ABC and VED analysis. Eurasian Journal of Health Technology Assessment, 2(1), 14-18.
• 16. Chawla, V., Itika, I., Singh, P., Singh, S. (2024). A fuzzy Pythagorean TODIM method for sustainable ABC analysis in inventory management. Journal of Future Sustainability, 4(2), 85-100.
• 17. Chen, J.X. (2011). Peer-estimation for multiple criteria ABC inventory classification. Computers & Operations Research, 38(12), 1784-1791.
• 18. Chok, N.S. (2010). Pearson's versus Spearman's and Kendall's correlation coefficients for continuous data (Doctoral dissertation). University of Pittsburgh.
• 19. Chu, C.W., Liang, G.S., Liao, C.T. (2008). Controlling inventory by combining ABC analysis and fuzzy classification. Computers & Industrial Engineering, 55(4), 841-851.
• 20. Cohen, I., Huang, Y., Chen, J., Benesty, J., Benesty, J., Chen, J., ..., Cohen, I. (2009). Pearson correlation coefficient. Noise reduction in speech processing, 1-4. 288 M. Kmiecik
• 21. Datta, S., Samantra, C., Sankar Mahapatra, S., Mandal, G., Majumdar, G. (2013). Appraisement and selection of third party logistics service providers in fuzzy environment. Benchmarking: An International Journal, 20(4), 537-548.
• 22. De Winter, J.C., Gosling, S.D., Potter, J. (2016). Comparing the Pearson and Spearman correlation coefficients across distributions and sample sizes: A tutorial using simulations and empirical data. Psychological Methods, 21(3), 273.
• 23. Dhoka, D., Choudary, Y.L. (2013). ABC classification for inventory optimization. IOSR Journal of Business and Management, 15(1), 38-41.
• 24. Douissa, M.R., Jabeur, K. (2016). A new model for multi-criteria ABC inventory classification: PROAFTN method. Procedia Computer Science, 96, 550-559.
• 25. Flores, B.E., Whybark, D.C. (1987). Implementing multiple criteria ABC analysis. Journal of Operations Management, 7(1-2), 79-85.
• 26. Genovese, C.R., Roeder, K., Wasserman, L. (2006). False discovery control with p-value weighting. Biometrika, 93(3), 509-524.
• 27. Goodman, S. (2008). A dirty dozen: twelve p-value misconceptions. Seminars in hematology, Vol. 45, No. 3. WB Saunders, pp. 135-140.
• 28. Griffis, S.E., Goldsby, T.J., Cooper, M., Closs, D.J. (2007). Aligning logistics performance measures to the information needs of the firm. Journal of Business Logistics, 28(2), 35-56
• 29. Gupta, R.K.G.R., Gupta, K.K., Jain, B.R., Garg, R.K. (2007). ABC and VED analysis in medical stores inventory control. Medical Journal Armed Forces India, 63(4), 325-327.
• 30. Guvenir, H.A., Erel, E. (1998). Multicriteria inventory classification using a genetic algorithm. European Journal of Operational Research, 105(1), 29-37.
• 31. Hadi-Vencheh, A. (2010). An improvement to multiple criteria ABC inventory classification. European Journal of Operational Research, 201(3), 962-965.
• 32. Herlambang, C.A., Parung, J. (2021). Information system design and inventory management on pharmacy business within ABC-XYZ analysis method. Airlangga Journal of Innovation Management, 2(2), 194-205.
• 33. Herold, D.M., Nowicka, K., Pluta-Zaremba, A., Kummer, S. (2021). COVID-19 and the pursuit of supply chain resilience: Reactions and "lessons learned" from logistics service providers (LSPs). Supply Chain Management: An International Journal, 26(6), 702-714.
• 34. Hidayatuloh, S., Winati, F.D., Samodro, G., Qisthani, N.N., Kasanah, Y.U. (2023). Inventory Optimization in Pharmacy Using Inventory Simulation-Based Model During the Covid-19 Pandemic. Jurnal INTECH Teknik Industri Universitas Serang Raya, 9(2), 110-116.
• 35. Huge-Brodin, M., Sweeney, E., Evangelista, P. (2020). Environmental alignment between logistics service providers and shippers-a supply chain perspective. The International Journal of Logistics Management, 31(3), 575-605
• 36. Indrasan, Y.S., Rajput, V., Chaware, K. (2018). ABC analysis: A literature review. Journal For Advanced Research In Applied Sciences, 5(5), 134-137.
• 37. Kachitvichyanukul, V., Luong, H., Pitakaso, R. (2012). An ABC Analysis Model for the Multiple Products Inventory Control - A Case Study of Company X. Asia Pacific Industrial Engineering & Management Systems Conference.
• 38. Kaczorowska, Z., Staniec, I., Szczygieł, N. (2019). Klasyfikacja abc/xyz w zarządzaniu gospodarką materiałową w przedsiębiorstwie produkcyjnym. Zeszyty Naukowe. Organizacja i Zarządzanie, Tom 73, Nr 1228. Łódź: Wydawnictwo Politechniki Łódzkiej, ISSN 0137-2599.
• 39. Kampf, R., Lorincová, S., Hitka, M., Caha, Z. (2016). The application of ABC analysis to inventories in the automatic industry utilizing the cost saving effect. Naše More: znanstveni časopis za more i pomorstvo, 63(3 Special Issue), 120-125.
• 40. Kartika, A.A., Girsang, E., Wienaldi, W., Ginting, C.N. (2023). Application Of Consumption Method With Eoq, Mmsl Forecasting And Abc-Ven Analysis In Pharmaceutical Briefing Management In Hospitals General Royal Prima Marelan. International Journal of Science, Technology & Management, 4(4), 715-723.
• 41. Khan, F.A., Khan, M.I. (2023). Integration of ABC Analysis with Fuzzy DEMATEL and Fuzzy TOPSIS in Supplier Selection and Ranking Problems. Business Perspectives and Research, 22785337231170468.
• 42. Kiyak, E., Timuş, O., Karayel, M. (2015). Inventory classification with ABC analysis. Journal of Naval Sciences and Engineering, 11(2), 11-24.
• 43. Kmiecik, M. (2023). Digital Twin as a Tool for Supporting Logistics Coordination in Distribution Networks. International Journal of Supply Chain Management, 12(1), 1-6.
• 44. Kmiecik, M., Wolny, M. (2022). Forecasting needs of the operational activity of a logistics operator. LogForum, 18(2).
• 45. Li, Z., Wu, X., Liu, F., Fu, Y., Chen, K. (2019). Multicriteria ABC inventory classification using acceptability analysis. International Transactions in Operational Research, 26(6), 2494-2507.
• 46. Liu, J.C., Wu, Y. (2014). Application of ABC analysis in inventory management. Advanced Materials Research, 1030, 2515-2518.
• 47. Maas, S., Schuster, T., Hartmann, E. (2018). Stakeholder pressures, environmental practice adoption and economic performance in the German third-party logistics industry- a contingency perspective. Journal of Business Economics, 88(2), 167-201.
• 48. Mangan, J., Lalwani, C. (2016). Global logistics and supply chain management. John Wiley & Sons.
• 49. Mfizi, E., Niragire, F., Bizimana, T., Mukanyangezi, M.F. (2023). Analysis of pharmaceutical inventory management based on ABC-VEN analysis in Rwanda: A case study of Nyamagabe district. Journal of Pharmaceutical Policy and Practice, 16(1), 1-6.
• 50. Millstein, M.A., Yang, L., Li, H. (2014). Optimizing ABC inventory grouping decisions. International Journal of Production Economics, 148, 71-80.
• 51. Muenjitnoy, A., Seanbudda, P., & Kuanmuang, S. (2023). Efficiency improvement of inventory management for community enterprise group with ABC analysis. International Academic Multidisciplinary Research Conference In Seoul, pp. 237-244.
• 52. Nallusamy, S., Balaji, R., Sundar, S. (2017). Proposed model for inventory review policy through ABC analysis in an automotive manufacturing industry. International Journal of Engineering Research in Africa, 29, 165-174.
• 53. Ng, W.L. (2007). A simple classifier for multiple criteria ABC analysis. European Journal of Operational Research, 177(1), 344-353.
• 54. Ostertagova, E., Ostertag, O. (2012). Forecasting using simple exponential smoothing method. Acta Electrotechnica et Informatica, 12(3), 62.
• 55. Pandya, B., Thakkar, H. (2016). A review on inventory management control techniques: ABC-XYZ analysis. REST Journal on Emerging trends in Modelling and Manufacturing, 2(3).
• 56. Partovi, F.Y., Burton, J. (1993). Using the analytic hierarchy process for ABC analysis. International Journal of Operations & Production Management, 13(9), 29-44.
• 57. Pawar, S.B., Landage, A.B. ABC analysis the inventory control system for a construction firm to identify variations in material cost.
• 58. Quiroz-Flores, J.C., Caceres-Paitan, D., Avila-Nolasco, R. (2023). Inventory control model based on Big Data, EOQ, ABC and forecast to increase productivity in a hardware SME. Proceedings of the 14th International Conference on E-Education, E-Business, E-Management and E-Learning, pp. 271-275.
• 59. Ramanathan, R. (2006). ABC inventory classification with multiple-criteria using weighted linear optimization. Computers & Operations Research, 33(3), 695-700.
• 60. Ravinder, H., Misra, R.B. (2014). ABC analysis for inventory management: Bridging the gap between research and classroom. American Journal Of Business Education.
• 61. Rusanescu, M. (2014). ABC analysis, model for classifying inventory. Hidraulica, 2, 17.
• 62. Sanchez Rodrigues, V., Kumar, M. (2019). Synergies and misalignments in lean and green practices: a logistics industry perspective. Production Planning & Control, 30(5-6), 369- 384.
• 63. Šarić, T., Šimunović, K., Pezer, D., Šimunović, G. (2014). Inventory classification using multi-criteria ABC analysis, neural networks and cluster analysis. Tehnički Vjesnik, 21(5), 1109-1115.
• 64. Satchell, S.E., Hwang, S. (2001). Tracking error: Ex ante versus ex post measures. Journal of Asset Management, 2(3), 241-246.
• 65. Sharma, S.K., Tripathi, H. (2023). Study on inventory management improvement. Open Access Repository, 9(2), 10-21.
• 66. Shashi, M. (2023). Sustainable Digitalization in Pharmaceutical Supply Chains Using Theory of Constraints: A Qualitative Study. Sustainability, 15(11), 8752.
• 67. Simanjuntak, G.F.D., Putri, H.S., Sinaga, I.P.M., Adibestari, N., Lazuardy, A. (2022). Aggregate Planning to Minimize Cost of Production of ABC Company with Forecasting and Master Production Schedule Approach.
• 68. Suryaputri, Z., Gabriel, D.S., Nurcahyo, R. (2022). Integration of ABC-XYZ Analysis in Inventory Management Optimization: A Case Study in the Health Industry.
• 69. Ternero, R., Sepulveda-Rojas, J.P., Alfaro, M., Fuertes, G., Vargas, M. (2023). Inventory management with stochastic demand: case study of a medical equipment company. South African Journal of Industrial Engineering, 34(1), 131-142.
• 70. Torabi, S.A., Hatefi, S.M., Pay, B.S. (2012). ABC inventory classification in the presence of both quantitative and qualitative criteria. Computers & Industrial Engineering, 63(2), 530-537.
• 71. Valdivia Seminario, C., Flores Perez, A.E., Marin Becerra, F. (2023). Application of ABC Classification, EOQ, Fuzzy AHP, Time Series Models to improve order fulfillment in a trading company of household appliances. Proceedings of the 10th International Conference on Industrial Engineering and Applications, pp. 253-259.
• 72. Vanesa, L., Helma, H. (2023). Analysis of Raw Material Inventory Control using the ABC Analysis Method and EOQ Method in the Fajar Onion Crackers Business. Mathematical Journal of Modelling and Forecasting, 1(1), 1-9.
• 73. Vivaldini, M., Pires, S., de Souza, F.B. (2008). Collaboration and Competition between 4PL and 3PL: a study of a fast-food supply chain. Journal of Operations and Supply Chain Management, 1(2), 17-29.
• 74. Yu, M.C. (2011). Multi-criteria ABC analysis using artificial-intelligence-based classification techniques. Expert Systems with Applications, 38(4), 3416-3421.
• 75. Zhou, P., Fan, L. (2007). A note on multi-criteria ABC inventory classification using weighted linear optimization. European Journal Of Operational Research, 182(3), 1488- 1491.

Identyfikatory

DOI

10.29119/1641-3466.2023.189.18