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11A0032
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"Dynamic Inventory Management Parameters Adjusting Scheme as a Logistics Service"
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Ari Happonen * , Lappeenranta University of Technology, Finland
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Erno Salmela, Lappeenranta University of Technology, Finland
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* = Corresponding author
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This study examined the knowledge enhancement model, in which a logistics service provider (LSP) provides dynamic inventory parameter management and update service for its customers in the future. This type of a case-based research data about 4PL model cases was one of the research gaps revealed by the literature review done by Selviaridis and Spring (2007). The research data has been collected through interviews of company owners, logistics managers, project leaders and logistics consultants and also from case study, based on real inventory data. The researched concept allows providing of strategic services, such as temporary funding of inventory components, continuous development of the supply chain and new exception management capabilities. The case is considered a good example how demanding and information analytical LSP services are not limited to large size companies and service providers and how it is possible for a small company to grow with the LSP and subcontractors in case of carefully designed supply chain and inventory buffers. Through applying this model, the LSP can be identified as an enabler of growth and as such LSP can have a tactical supply chain manager role. For a large company, the model may save a huge amount of assets and energy as the inventories are fitted to projected demand. Dynamic warehouse management model allows demand synchronized inventory parameter update process using fast re-parametrization process based on real inventory demand data. The model is based on an idea of using both long and short time period history data to anticipate the future demand and its variations.
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