Effective inventory management in the automotive industry, a literature study.

Sammanfattning: The automotive industry is characterized by the importance of its inventories and the diversity of these inventories. They are strategic key factors to ensure a short time to market. The effective management of such an important asset is vital to ensure the high competitiveness of car manufacturers. Stocks immobilize significant financial resources while generating additional costs at various levels too. The importance of cost-effective management of these costs for car manufacturers has made it a field of interest for many studies. Many cost control techniques and concepts have been proposed. Yet, the author of this thesis could not find articles or reviews that discuss the possible links between these tools and concepts. The aim of this thesis is therefore to explore and get a better understanding of the financial side of inventory management out of applied inventory management cost control techniques. This literature review is based on scientific articles which deal with the subject, and which are published in recognized scientific journals. The PRISMA method is used as a selection criterion for these articles, followed by an in-depth analysis of them. It draws special attention to the four key factors that contribute to cost-effective inventory management within the automotive industry (1) quantity, (2) predictability, (3) prioritization and (4) information. It discusses their impact on inventories and highlights the pros and cons of different tools mentioned in the studied papers. Forecasting is found to be the common element of all the tools. Propositions for further studies of interest to the subject are presented at the end.Keywords: Inventory