Accounting monitoring stocks of raw materials and supplies plays an important role in the business of every major company. Since inventories are one of the most expensive types of company assets, accounting for more than 50% of total invested capital, optimal inventory management should be an integral part of every company's business. In order to get complete results, this paper applies the ABC method, XYZ method, as well as the cross ABC XYZ method. The goal is to reduce costs of keeping the inventory as much as possible, while maintaining a level of service customers requires. The process of assortment planning, ordering and inventory management in the construction material warehouse is analyzed. The importance of monitoring inventory movements in order to achieve optimal amount of inventory, as well as the obtained results and guidelines for future operations is presented.
Jel Classification: C46
Stević, Ž., Merima, B. (2021). ABC/XYZ Inventory Management Model in a Construction Material Warehouse. Alphanumeric Journal, 9(2), 325-334. http://dx.doi.org/10.17093/alphanumeric.1052034
Received: April 5, 2021
Accepted: Dec. 30, 2021
Published: Dec. 31, 2021
2021 Stević, Ž., Merima, B.
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School of Transportation and Logistics, Istanbul University
Avcilar Campus 34320 Avcilar/Istanbul/TURKEY
Bahadır Fatih Yıldırım, Ph.D.
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