2026-04-13T01:43:26Zhttps://recercat.cat/oai/requestoai:recercat.cat:2117/1172162025-07-24T18:13:25Zcom_2072_1033col_2072_452951
RECERCAT
author
Fortian Corts, Nona
2017-06
Inventory management has become a topic of broad interest as a way for improving competitive
performance though higher service levels at a lower cost. Inventory management strategies are numerous
and the trade-off between centralization vs. decentralization of inventories is known as a suitable
technique to balance inventory cost with service level. The food industry is one of the largest segments
in the EU’s manufacturing sector and presents a challenging management of its supply chain due to its
increasing complexity and changing environment. With competition being fiercer than ever, inventory
management is a major concern in many food supply chains in which speed and flows of information
and products become essential to reduce costly waste and keep customer satisfaction at the highest level.
This paper aims to understand how inventory centralization and decentralization strategies can help food
companies managing its inventory in the most appropriate way. The intention is to provide managers
with recommendations on how inventory management is improved on the basis of relevant literature
and to extend what is already known in the previous supply chain management field.
The thesis conducts a single case study research in one of today’s leading food companies. Reasons for
improving inventory management practices are found in high supply chain related costs, high amount
of capital tied up in inventory and long and uncertain lead times from production until the end-consumer.
The pre-assumption is that higher inventory rotation and lower costs can be attained by implementing
inventory centralization strategies. However, reducing the number of inventory locations increases
distances from warehouse to customer, increasing transportation costs and possibly reducing service
level. Therefore, identifying the appropriate balance between centralizing vs. decentralizing inventory
is of key importance.
This research provides a broader and multidisciplinary approach to centralization and decentralization
inventory challenges. It identifies the key factors and its influence on the degree of inventory
centralization in the food industry regarding finished goods. Hence, even though literature presents
models on how to determine optimal inventory configuration, these are generally focused in fewer
factors and lack of particular applicability into the food industry. This work, therefore, aims to close part
of this gap by proposing a holistic decision making framework relevant in situations where several
factors are to be considered for defining the inventory management strategy in food firms. It contributes
with a 10-factor analysis combining qualitative and quantitative approach to determine the current and
most advantageous degree of inventory centralization using a simple scale.
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Àrees temàtiques de la UPC::Economia i organització d'empreses
Food
Management
Aliments -- Administració
Empreses alimentàries
Inventory management in the food industry-centralization vs decentralization
Master thesis