Application of ABC-Kraljic Classification in Inventory Management Within Traditional Small Foreign-Related Manufacturing Enterprises

DOI

10.2991/978-94-6463-038-1_12How to use a DOI?

Keywords

ABC-Kraljic classification; material classification; inventory management; supply risk; purchasing cost

Abstract

Inventory management is a crucial part of supply chain management and plays an important role in the business operation and development of manufacturing enterprises. The outdated inventory management methods and extensive material classification methods adopted by traditional small manufacturing enterprises have become major constraints to their development. To address the inventory management challenges of small foreign-related manufacturing enterprises, the inventory management of company D is taken as a case study in this paper. The conventional ABC classification method and Kraljic matrix method are integrated to build an ABC-Kraljic classification matrix model, based on which the company’s materials are classified into four categories: high-value high-risk strategic materials, high-value low-risk leverage materials, low-value high-risk bottleneck materials, low-value low-risk routine materials, and differentiated inventory classification management measures are proposed based on material characteristics to reduce supply risk and purchasing cost and improve the core competitiveness of manufacturing enterprises.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Feiyan Zhong
PY  - 2022
DA  - 2022/12/15
TI  - Application of ABC-Kraljic Classification in Inventory Management Within Traditional Small Foreign-Related Manufacturing Enterprises
BT  - Proceedings of the 2022 3rd International Conference on Management Science and Engineering Management (ICMSEM 2022)
PB  - Atlantis Press
SP  - 111
EP  - 123
SN  - 2589-4943
UR  - https://doi.org/10.2991/978-94-6463-038-1_12
DO  - 10.2991/978-94-6463-038-1_12
ID  - Zhong2022
ER  -