Flexible supply capability driving total inventory reduction: an analysis of Omron Healthcare

This study analyses total inventory from multiple perspectives, meaning from the perspective of each party involved from the upstream to the downstream, and investigates how to reduce total inventory using Omron Healthcare as a case study. We conduct an analysis on its supplier, production and sales departments, and distributor. Through the case study, we clarify that companies need successful supply chain integration in order to achieve a reduction of total inventory. Requisites for such integration include goal sharing among parties and using a mixture of different production systems with a high level of production capability. Most importantly, we suggest that a flexible upstream supply capability influences downstream activities (i.e., order policy).