Production Engineering

, Volume 13, Issue 1, pp 21–32 | Cite as

The degree of inventory centralization for food manufacturers

  • Nona Fortian Corts
  • Zaza Nadja Lee Herbert-Hansen
  • Samuel Brüning Larsen
  • Waqas KhalidEmail author
Production Management


For food manufacturers, limited shelf-lives and ‘freshness’ requirements increase inventory holding costs. Accuracy in choosing the most advantageous degree of inventory centralization (MADIC) is therefore central for competitiveness. While extant research contains several industry-generic factors that influence centralization decisions, influencing factors for food manufacturers, in particular, is under-explored. This paper identifies the factors that influence the MADIC for food manufacturers and develops a method that integrates all factors for MADIC-determination. The study examines a single case facilitating deep-dives into unknown areas. Results show nine factors of which three are specific to food manufacturing. Furthermore, the paper details how practitioners can determine a MADIC-score on a 1–100 scale for their particular operations. While food manufacturing inventory centralization literature is scarce, this paper contributes to a holistic study of multiple relevant factors and a method that integrates all factors into one result.


Centralization Decentralization Food manufacturing Inventory management Case study research Multicriteria decisions 


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Copyright information

© German Academic Society for Production Engineering (WGP) 2019

Authors and Affiliations

  1. 1.Implement Consulting GroupHellerupDenmark
  2. 2.The Danish National ArchivesCopenhagenDenmark
  3. 3.Technical University of DenmarkLyngbyDenmark
  4. 4.Mechanical DepartmentTechnical University of DenmarkLyngbyDenmark

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