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Apparent Contradictions Effective and Efficient Supply Chain- Time Pressure and Eliminating the Stock

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  • Cvetkovic, Miodrag
  • Randelovic, Maja
  • Milicevic, Raica

Abstract

Responsive performance as a response to all the requirements of customers and consumers, at first glance, requires plenty of time and a high level of inventories in order to service the customers and consumers in a quality manner. However, in recent decades, along with the development of the concept of supply chain, in theory and in practice, proves the opposite: in conditions of the high level of competition and the speed of change in the needs and demands of consumers, the speed of orders execution is often the key performances in many supply chains. As regards inventory, competitive supply chain tends to hold stocks only for the needs of production during or even minimum safety stocks over it. Companies are trying to organize their supply chains so as to achieve the quality, completeness and reliability of delivery in the shortest possible time and with minimal inventory. Such operational capability is achieved and the efficiency and competitiveness of the supply chain, that is, “operational excellence” can be solve contradiction of the time compression and the stock reduction, compared to the total satisfaction of customers.. This paper will be discussed models, methods and techniques of management in the supply chain that allow such an organization.

Suggested Citation

  • Cvetkovic, Miodrag & Randelovic, Maja & Milicevic, Raica, 2017. "Apparent Contradictions Effective and Efficient Supply Chain- Time Pressure and Eliminating the Stock," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 63(3), September.
  • Handle: RePEc:ags:sereko:290272
    DOI: 10.22004/ag.econ.290272
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    Keywords

    Demand and Price Analysis;

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