Browsing by Subject "Inventory pooling"

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Open Access
A literature review on inventory pooling with applications
(MDPI AG, 2025-01-20) Yılmaz, Özlem
In this paper, we provide a review of academic research on inventory pooling published between 2010 and 2024, with a particular emphasis on studies that focus on real-world applications. The review analyzes the research conducted over the past 14 years, evaluates the outcomes of these applied studies, and identifies gaps in the literature. The contribution of this work is twofold: firstly, it provides insights into the extent to which theoretical advancements in inventory pooling have been implemented in the practice; secondly, it provides practitioners with an overview of recent real-world applications across various industrial contexts. The findings highlight the impact of inventory pooling on cost savings, service level improvements, inventory optimization in diverse sectors, and sustainability. Additionally, this paper examines the contributions of inventory pooling to economic, environmental, and social sustainability, offering a comprehensive analysis of its role in fostering sustainable practices across supply chains. Finally, the paper discusses practical challenges encountered in implementation and suggests directions for future research in this domain.
Open Access
Inventory performance with pooling: evidence from mergers and acquisitions
(Elsevier, 2015) Çömez-Dolgan, N.; Tanyeri B.
Theoretical studies show that compared to decentralized inventory management, (i) pooling inventories for different demand sources decreases the optimal safety stock, which in turn decreases inventory costs and (ii) the decrease in stock is related to the correlation between the different demand sources and variabilities of demands. Mergers and acquisitions (M&A) provide a business context to investigate the effects of correlation and variability of the merging firms' demands on potential improvements in inventory performance through inventory pooling. While merging firms may not fully centralize their inventory decisions, the coordination of inventory and supply chain decisions may result in synergies. Using firm-level data for 270 same-industry mergers carried out in U.S. between 1981 and 2009, we find that the inventory turnover of bidder and target firms improves (relative to firms in their industry) following the successful completion of mergers. The improvement in turnover is especially pronounced in deals where the demand of bidder and target firms are negatively correlated prior to the merger. Our results provide novel empirical support for the predictions of theoretical models on inventory economies in M&A.