Inventory holding costs measurement : a multi-case study

Purpose – Logisticians in the worldwide industry are frequently faced with the problem of measuring the total cost of holding inventories with simple and easy-to-use methodologies. The purpose of this paper is to look at the problem, and in particular illustrate the inventory holding cost rate computation, when different kind of warehousing systems are applied. Design/methodology/approach – A multiple case study analysis is here developed and supported by a methodological framework directly derived from the working group discussions and brainstorming activities. Two different field of application are considered: one related to five companies with manual warehousing systems operating with traditional fork lift trucks; the other is among five companies operating with automated storage/retrieval systems (AS/RS) to store inventories. Findings – The multi-case study helps to understand how the holding cost parameter is currently computed by industrial managers and how much the difference between manual and aut...

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