A risk-return framework for inventory management: conventional inventory classification methods like ABC may no longer suffice in a fast life-cycle economy.

Supply Chain Management Review, January, 2002 by Cheung, Ki Ling

What's needed is a technique that considers both the return and the risk of holding inventory. The ability to classify products along a risk-return framework is an essential first step toward better inventory management. And better inventory management is the cornerstone of better supply chain management. (Analysis)

Effective supply chain management is imperative to the prosperity of a company--and, in fact, of an economy. Over the past decade, we have witnessed great improvements in the operation of many supply chains--from the apparel and grocery industries to the semiconductor and computer sectors. Exciting innovations, such as quick response (QR); vendor-managed inventory (VMI); and collaborative planning, forecasting, and replenishment (CPFR), have...

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