What are the limitations of traditional inventory control in supply chain management environment

1. No holistic view of the supply chain

2. Inappropriate understanding and definition of service to users

Good or bad performance in supply chain management should be evaluated by the users, or in terms of responsiveness to the users. However, the understanding and definition of service to users varies, leading to differences in the level of service to users.

3. Inaccurate delivery status data

4. Inefficient information transfer system

5. Ignoring the impact of uncertainty on inventory

There are many uncertainties in supply chain operations, such as order lead time, the status of goods transportation, the quality of raw materials, the timing of the production process, the time of transportation, and changes in demand.

6. Simplicity of inventory control strategies

7. Lack of cooperation and coordination

The supply chain is a whole, and it needs to coordinate the activities of all parties in order to achieve the best operational results. The purpose of coordination is to make the information that meets certain service quality requirements can be seamlessly and smoothly transmitted in the supply chain, so that the entire supply chain can be in step according to the user's requirements, to form a more reasonable supply and demand relationship, and to adapt to the complex and changing market environment.

8. The process design of the product does not take into account the impact of inventory in the supply chain.

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