A review of the guidelines for ABC stock control

Abstract

The paper summarises the methods promulgated in the literature for the design and maintenance of an effective inventory control system. Surprisingly, when it comes to putting theory into practice, the directives are often contradictory or opaque and their logic is inconsistent. Several published cases are dissected to try and rectify this parlous situation. In fact, the exercise soon reveals the heart of the problem. The classic EOQ model ignores the part played at the supplier&rsquo;s end by efficient and responsive warehouse and transport operations. These activities depend greatly upon good advanced resource planning, which in turn is able to benefit from regular, cyclic, stock replenishment procedures.<br /