Related_Literature_-_Foreign

Chapter 2 REVIEW OF RELATED LITERATURE AND STUDIES The researchers gathered different related literature and studies, both from foreign and local sources, in order to understand more about their study. They made the highlights of their findings in a narrative presentation following this paragraph. Foreign Literature Shah Janat (2010), every participant in a supply chain, whether wholesaler, retailer or manufacturer or vendor, prefers to reduce inventories and yet maintain customer service so as not to lose customers because of the non-availability of goods. Huge inventories are a drain on resources, as it blocks money and increase cost of operations. So it is no surprise that all firms want to reduce inventory in the supply chain. The inventory may be divided into various categories. In general there are six main categories of inventories: First, the cycle stock, the inventory resulting from production or purchase in batches is called cycle stocks, since the lots are produced or purchased in cyclical lots. Second is the safety stocks, as the name suggests, are maintained as a safeguard against uncertainties of demand and supply. Third is the decoupling stocks, which provide the flexibility needed by each decision-making unit to manage its operations independently and to optimize its performance. Fourth, anticipation inventory which consists of stocks accumulated in advance of expected peak in sales or that which takes care of some special event that does not occur on regular basis. This has two categories, the seasonal stocks and the speculation stocks. The fifth is the pipeline inventory which consists of materials actually being worked on or being moved from one location to another in the chain. Lastly, the dead stock which refers to that part of non-moving inventory that is unlikely to be any further use in supply chain operations or markets. Parvinen, et al (2007) said that within customer-oriented business organizations, corporate management can be understood as corporate strategic marketing (CSM), or marketing the corporation in various markets is critical. Corporate strategic marketing consists of interrelated practices of marketing the corporation in various markets. The markets have links to different traditional realms of corporate management, such as strategy, finance, corporate communications, and marketing. On the other hand, Cravens (2006), stresses that strategic marketing is confronted with an array of global challenges and opportunities at the beginning of the twenty-first century. It was found out that strategic thinking for changing markets, disruptive innovation, communization threats, value-driven segmentation and creating new market space impacts marketing strategies. The challenges are marketing’s strategic role, marketing productivity, strategic relationships, value chain dynamics, collaborative challenges and customer relationship marketing. According to Ronald Pachura "It is nearly impossible to overemphasize the importance of keeping inventory levels under control," wrote in an article for IIE Solutions. "Whether the problems incurred are caused by carrying too little or too much inventory, manufacturers need to become aware that inventory control is not just a materials management or warehouse department issue. The purchasing, receiving, engineering, manufacturing, and accounting departments all contribute to the accuracy of the inventory methods and records." However, Goran (2007), in his research of inventory efficiency of turnover rate concluded that there is a part an association between companies’ inventories and changes in turnover rate. Occurrence in changes in turnover rate requires some knowledge to be considered in corporate strategic planning of supply chain management. Companies have to carefully consider the impact that their current policies of inventory management have qualitative and quantitative changes in turnover. As a result of increased changes, the financial benefits that may be achieved through being lean in the inventory management areas of one’s business might negatively influence the financial costs incurred.