Flexible Warehousing Policies
26 Pages Posted: 6 Dec 2004
Date Written: August 2004
Increased competition and uncertainty characterise the new economy, introducing significant pressures to supply chain participants, calling for capital investments only in value adding/revenue-generating assets. The tendency of companies to expand their control through the entire supply chain seems to attract significant managerial attention. On the other hand, large manufacturer and distributor firms have developed specific competences that do not expand to all the levels of the supply chain. In order to confront the lack of knowledge and expertise companies can either outsource the specific operation or acquire a company that is specialized in the specific field. In this paper we focus on warehousing decisions and investigate three different warehousing policies and ownership structures of the warehousing facilities.
Keywords: Inventory Management, Supply Chain, Flexibility
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