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The degree of inventory centralization for food manufacturers

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Abstract

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.

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Authors and Affiliations

  1. Implement Consulting Group, Hellerup, Denmark

    Nona Fortian Corts

  2. The Danish National Archives, Copenhagen, Denmark

    Zaza Nadja Lee Herbert-Hansen

  3. Technical University of Denmark, Lyngby, Denmark

    Samuel Brüning Larsen

  4. Mechanical Department, Technical University of Denmark, Lyngby, Denmark

    Waqas Khalid

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  1. Nona Fortian Corts
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  2. Zaza Nadja Lee Herbert-Hansen
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  3. Samuel Brüning Larsen
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  4. Waqas Khalid
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Correspondence to Waqas Khalid.

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Corts, N.F., Herbert-Hansen, Z.N.L., Larsen, S.B. et al. The degree of inventory centralization for food manufacturers. Prod. Eng. Res. Devel. 13, 21–32 (2019). https://doi.org/10.1007/s11740-018-00872-1

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