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Reverse Redistribution Management

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Author(s): Veronika Vitkova, Petr Tulach | Tomas Hladik

Journal: International Journal of Innovative Technology and Creative Engineering
ISSN 2045-869X

Volume: 1;
Issue: 9;
Start page: 7;
Date: 2011;
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Keywords: Redistribution | Inventory management | Cost reduction

ABSTRACT
The purpose of this paper is to prove methods of redistribution management on the model of unsold goods. A research was carried out with data sourced from the aftermarket sector. The research was used to explore basic questions of what are the benefits of unsold goods redistribution and how it should effectively contribute to inventory management. The existing information models have focused on forward distribution flows – from suppliers to consumers. The current information systems are generally in-depth specialized in forecasting methods of future consumption while they do not deal with returnable asset control. The paper provides a comprehensive description of the redistribution principles tested on the compiled model. The basic prerequisite that needs to be fulfilled in order to reach results, is sharing information between suppliers and consumers. For application of this method a shared information platform within the supply chain is required. The expected outcomes of the proposed model are reduced inventory levels and improved structure of the portfolio resulting in higher profits. The redistribution was conducted with the aim of accelerating inventory turnover and minimizing redundant purchasing. Furthermore, a correlation between unsold goods redistribution and higher load vehicle factor was identified.
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