Inventory Management in Closed Loop Structure Using KPIs

摘要

Inventory management is one of the major function of the supply chain. It is indeed considered as a serious issue that greatly affects the company performances. Due to the complexity of the inventory process and its resulting operations. It is difficult to find an effective way to extract relevant information from a large amount of data and thus make strategic decisions based on the meaningful and accurate information. The manager goal is also to find the right balance between an optimal stock level and an acceptable level of service. This paper proposes closed-loop control of an inventory process using Key performance indicators (KPI's). Based on the comparison between measured KPI's and target KPI's, solutions are proposed to improve the management of the stock process.