ABC/XYZ Inventory Management Model in a Construction Material Warehouse

Stević, Željko; Merima, Bećirović

doi:http://dx.doi.org/10.17093/alphanumeric.1052034

ABC/XYZ Inventory Management Model in a Construction Material Warehouse

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Željko Stević, Ph.D.

Bećirović Merima

Abstract

Accounting monitoring stocks of raw materials and supplies plays an important role in the business of every major company. Since inventories are one of the most expensive types of company assets, accounting for more than 50% of total invested capital, optimal inventory management should be an integral part of every company's business. In order to get complete results, this paper applies the ABC method, XYZ method, as well as the cross ABC XYZ method. The goal is to reduce costs of keeping the inventory as much as possible, while maintaining a level of service customers requires. The process of assortment planning, ordering and inventory management in the construction material warehouse is analyzed. The importance of monitoring inventory movements in order to achieve optimal amount of inventory, as well as the obtained results and guidelines for future operations is presented.

Keywords: ABC Analysis, Inventory Management, Warehouse, XYZ Analysis

Jel Classification: C46

Suggested citation

Stević, Ž. & Merima, B. (2021). ABC/XYZ Inventory Management Model in a Construction Material Warehouse. Alphanumeric Journal, 9(2), 325-334. http://dx.doi.org/10.17093/alphanumeric.1052034

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2021.09.02.OR.06

alphanumeric journal

Volume 9, Issue 2, 2021

Pages 325-334

Received: April 5, 2021

Accepted: Dec. 30, 2021

Published: Dec. 31, 2021

Full Text [406.8 KB]

2021 Stević, Ž., Merima, B.

This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence, which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.

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ABC/XYZ Inventory Management Model in a Construction Material Warehouse

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