Performance improvement of supply chain processes by coordinated inventory and capacity management

Werner Jammernegg, Gerald Reiner*

*Corresponding author for this work

Publication: Scientific journalJournal articlepeer-review


This study discusses the opportunities and challenges for improving the performance of supply chain processes by coordinated application of inventory management and capacity management. We illustrate our approach by a supplier company in the telecommunication and automotive industry (tier 2), where a manufacturer (production facility) is located in a country with low labor costs and high worker deployment flexibility. Using process simulation, we demonstrate how the coordinated application of methods from inventory management and capacity management result in improved performance measures of both intraorganizational (costs) and interorganizational (service level) objectives.

Original languageEnglish
Pages (from-to)183-190
Number of pages8
JournalInternational Journal of Production Economics
Issue number1-2
Publication statusPublished - Jul 2007

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502052 Business administration


  • Capacity management
  • Inventory management
  • Performance measurement
  • Simulation model
  • Supply chain processes

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