Open AccessThe Fallacy of Zero Inventories for Purchased Parts in Small Manufacturing and Job Shops
Author(s) -
William E. Mueller,
G.H. Massiha,
Corinne Dupuy
Publication year - 2015
Publication title -
international journal of advances in applied sciences
Language(s) - English
Resource type - Journals
eISSN - 2722-2594
pISSN - 2252-8814
DOI - 10.11591/ijaas.v4.i2.pp55-58
Subject(s) - vendor , operations management , point (geometry) , soundness , business , fallacy , marketing , manufacturing engineering , computer science , engineering , mathematics , philosophy , geometry , epistemology , programming language
In this article we examine the soundness of receiving most vendor shipments just prior to the time of use and then immediately delivering them from the receiving area to the point of use by some small US manufacturing industry. This approach in theory would save handling cost, storage cost, and inventory holding cost, the real world offers numerous pitfalls, especially for smaller manufacturers and job shops.