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  • Essay / A Research on Inventory Management - 1943

    Inventory management is a topic that has long attracted the attention of the academic and business communities. One of the most important points studied by academicians and practitioners for decades is the choice of economic order quantity (EOQ). As the name suggests, EOQ is the order quantity that minimizes the total inventory cost. Despite the numerous variations of the EOQ appearing in the literature to adapt it to reality, it still has limits. One of the main problems is that it does not take into account the hidden costs inherent in inventory systems. Some of these costs relate to sustainability issues, including environmental, social and economic effects. This research proposal considers some of these costs, called exergy costs, and estimates them using the Extended Exergy Accounting, EEA, approach. Extended exergy accounting assigns exergy values ​​equivalent to a system's capital, labor, and environmental remediation costs. The analysis combines classic exergy analysis with sustainability factors, which are environment, labor and capital. To make this proposal enjoyable for readers and to help them understand the idea we would like to introduce, this proposal is organized as follows: Section 2 presents the most important literature review related to the topic of this proposal. Section 3 introduces supply chain management, including a brief history and definition of supply chain management, its purpose and benefits. Then, we followed Green Supply Chain Management and Sustainable SCM respectively. In Section 4, we introduced the term “Exergy” and how to relate it to sustainability and inventory management. This was followed by exergy analysis and ...... middle of paper ...... "a set of approaches used to effectively integrate suppliers, manufacturers, warehouses and stores, so that goods are produced and distributed in the right quantities, to the right places and at the right time, to minimize system-wide costs while meeting service level requirements” (Simchi-Levi, et al 2004, p1 ).5.1 What are the objectives of SCM “The main objective of SCM is to increase the profitability of all members and reduce their total cost This task can be accomplished by changing and controlling all policies related to pricing. , ordering optimal quantities and managing inventory Therefore, the most important task of SCM is to increase inventory turnover by selling products faster, which will improve cash flow. capital return will be improved, reducing pressure on working capital..