The principle of balance between companies' inventories and disturbances in logistics flows: Empirical illustration and conceptualisation

Abstract

Stresses the crucial importance of the balance between companies' policies of inventory management and the occurrence of disturbances in logistics flows. The study is based upon a mail survey in the automotive industry. It is concluded that there is in part a significant association between companies' inventories and disturbances in inbound and outbound logistics flows. The financial benefits that might be achieved through leanness in inventory management might also negatively influence the financial costs due to increased disturbances. Therefore, it is a crucial managerial task in the automotive industry to achieve a suitable balance between the inventory and the occurrence of disturbance within inbound and outbound logistics flows. It is this balance that generates the best managerial outcome in a competitive business setting. A principle of balance, a process of balance, and a typology of companies' inventories and disturbances in inbound or outbound logistics flows are introduced.

Citation

Svensson, G. (2003), "The principle of balance between companies' inventories and disturbances in logistics flows: Empirical illustration and conceptualisation", International Journal of Physical Distribution & Logistics Management, Vol. 33 No. 9, pp. 765-784. https://doi.org/10.1108/09600030310503325