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REDUCING INVENTORY LEVELS IN A SUPERMARKET BY THE SIX SIGMA METHOD

Year 2022, Volume: 11 Issue: 3, 828 - 835, 30.09.2022
https://doi.org/10.17798/bitlisfen.1122251

Abstract

One of the most active sectors in an increasingly globalized world, retail sector has become a rapidly developing sector in Turkey as well. Companies in this sector must follow an inventory policy that provides them with minimum cost and maximum profit in order to compete and survive in market. For this reason, effective management of inventory is crucially important in the retail sector, as in other sectors. In this study, Six Sigma method was used in order to reduce the inventory levels in a large supermarket operating both wholesale and retail in Turkey. Six Sigma is a management tool that emphasizes continuous improvement as a culture and increases the efficiency of processes. In this study, the causes of high inventory levels were determined by following the steps of the Six Sigma method, and the collected data were analyzed. At the end of the implementation, some improvement actions were planned to reduce inventory levels, and a monitoring system was established to ensure sustainability. There was a deficiency in inventory tracking and demand forecasting processes. The main reason for this was seen to be the purchasing organization. It was determined that sometimes more than necessary purchases were made. Six sigma studies on supermarkets in Turkey are limited. This study sets an example for the use of the Six Sigma method, which is a systematic process improvement method for the retail industry.

References

  • [1] O. Akın, (2010), The implementation of Six Sigma systems with integrated activity based cost system in marble sector, Suleyman Demirel University, Social Sciences, Institute of Business Administration Doctoral Thesis, Isparta/Turkey, 2010.
  • [2] E. Işığıçok, Altı Sigma Kara Kuşaklar İçin Hipotez Testleri Yol Haritası, Marmara Kitapevi Yayınları, Bursa/Turkey, 2011.
  • [3] P.M. Wilson, Six Sigma – Understanding the concept, implications and challenges, Advanced System Consultants, New York, 1999.
  • [4] T. Pyzdek, Six Sigma handbook: A complete guide for greenbelts, blackbelts and managers at all levels, McGraw Hill, New York, 2001.
  • [5] P. S. Pande, R. P. Neuman and R. R. Cavanagh, The Six Sigma way: How GE, Motorola, and other top companies are honing their performance, McGraw-Hill, New York, 2000.
  • [6] R. Caulcutt, “Why is Six Sigma so successful?”, Journal of Applied Statistics, vol.28 no.3-4, pp.301-306, 2001.
  • [7] P. B. Deshpande, S. L. Makker and M. Goldstein, “Boost competitiveness via Six Sigma”, Chemical Engineering Progress, vol.11, pp.65-70, 1999.
  • [8] M. E. Kabir, S. M. M. I. Boby and M. Lutfi, “Productivity improvement by using Six-Sigma”, International Journal of Engineering and Technology, vol.3 no.12, pp.1056-1084, 2013.
  • [9] A. Chakrabarty and K. C. Tan, “The current state of Six Sigma application in services”, Managing Service Quality: An International Journal, vol.17 no.2, pp.194-208, 2007.
  • [10] J. A. Blakeslee, “Implementing the Six Sigma Solution”, Quality Progress, vol.32 no.7, pp.77-85, 1999.
  • [11] B. Wyper and A. Harrison, “Deployment of Six Sigma methodology in Human Resource function: A case study”, Total Quality Management & Business Excellence, vol.11 no.4-5, pp.720-727, 2000.
  • [12] M. V. Sánchez-Rebull, R. Ferrer-Rullan, A. B. Hernández-Lara and A. Niñerola, "Six Sigma for improving cash flow deficit: a case study in the food can manufacturing industry", International Journal of Lean Six Sigma, vol.11 no.6, pp. 1105-1126, 2020.
  • [13] E. Mitreva and F. Kirovski, “Application of the methodology of Six Sigma in public health institution”, SAR Journal, vol. 4 no. 3, pp.107-113, 2021.
  • [14] S. Furterer and A. K. Elshennawy, “Implementing of TQM and Lean Sigma tools in local goverment: A framework and a case study”, Total Quality Management & Business Excellence, vol.16 no.10, pp.1179-1191, 2005.
  • [15] A. S. Mahmoud, A. M. Hossian, W. K. Ahmed, M. Aly and M. Khalil, “Lean Six Sigma implementation in cement grinding process – “ABC” plant case study”, International Journal of Innovative Research in Technology & Science, vol.6 no.2, pp.1-3, 2018.
  • [16] L. Marrucci, M. Marchi and T. Daddi, “Improving the carbon footprint of food and packaging waste management in a supermarket of the Italian retail sector”, Waste Management, vol. 105, pp.594-603, 2020.
  • [17] P. Lavin and M. J. Vetter, “Using Lean Six Sigma to increase the effectiveness of an evidence-based quality improvement program”, Journal of Nursing Care Quality, vol.37 no.1, pp.81-86, 2022.
  • [18] E. V. Gijo and T. S. Rao, “Six Sigma implementation - Hurdles and more hurdles”, Total Quality Management & Business Excellence, vol.16 no.10, pp.721-725, 2005.
Year 2022, Volume: 11 Issue: 3, 828 - 835, 30.09.2022
https://doi.org/10.17798/bitlisfen.1122251

Abstract

References

  • [1] O. Akın, (2010), The implementation of Six Sigma systems with integrated activity based cost system in marble sector, Suleyman Demirel University, Social Sciences, Institute of Business Administration Doctoral Thesis, Isparta/Turkey, 2010.
  • [2] E. Işığıçok, Altı Sigma Kara Kuşaklar İçin Hipotez Testleri Yol Haritası, Marmara Kitapevi Yayınları, Bursa/Turkey, 2011.
  • [3] P.M. Wilson, Six Sigma – Understanding the concept, implications and challenges, Advanced System Consultants, New York, 1999.
  • [4] T. Pyzdek, Six Sigma handbook: A complete guide for greenbelts, blackbelts and managers at all levels, McGraw Hill, New York, 2001.
  • [5] P. S. Pande, R. P. Neuman and R. R. Cavanagh, The Six Sigma way: How GE, Motorola, and other top companies are honing their performance, McGraw-Hill, New York, 2000.
  • [6] R. Caulcutt, “Why is Six Sigma so successful?”, Journal of Applied Statistics, vol.28 no.3-4, pp.301-306, 2001.
  • [7] P. B. Deshpande, S. L. Makker and M. Goldstein, “Boost competitiveness via Six Sigma”, Chemical Engineering Progress, vol.11, pp.65-70, 1999.
  • [8] M. E. Kabir, S. M. M. I. Boby and M. Lutfi, “Productivity improvement by using Six-Sigma”, International Journal of Engineering and Technology, vol.3 no.12, pp.1056-1084, 2013.
  • [9] A. Chakrabarty and K. C. Tan, “The current state of Six Sigma application in services”, Managing Service Quality: An International Journal, vol.17 no.2, pp.194-208, 2007.
  • [10] J. A. Blakeslee, “Implementing the Six Sigma Solution”, Quality Progress, vol.32 no.7, pp.77-85, 1999.
  • [11] B. Wyper and A. Harrison, “Deployment of Six Sigma methodology in Human Resource function: A case study”, Total Quality Management & Business Excellence, vol.11 no.4-5, pp.720-727, 2000.
  • [12] M. V. Sánchez-Rebull, R. Ferrer-Rullan, A. B. Hernández-Lara and A. Niñerola, "Six Sigma for improving cash flow deficit: a case study in the food can manufacturing industry", International Journal of Lean Six Sigma, vol.11 no.6, pp. 1105-1126, 2020.
  • [13] E. Mitreva and F. Kirovski, “Application of the methodology of Six Sigma in public health institution”, SAR Journal, vol. 4 no. 3, pp.107-113, 2021.
  • [14] S. Furterer and A. K. Elshennawy, “Implementing of TQM and Lean Sigma tools in local goverment: A framework and a case study”, Total Quality Management & Business Excellence, vol.16 no.10, pp.1179-1191, 2005.
  • [15] A. S. Mahmoud, A. M. Hossian, W. K. Ahmed, M. Aly and M. Khalil, “Lean Six Sigma implementation in cement grinding process – “ABC” plant case study”, International Journal of Innovative Research in Technology & Science, vol.6 no.2, pp.1-3, 2018.
  • [16] L. Marrucci, M. Marchi and T. Daddi, “Improving the carbon footprint of food and packaging waste management in a supermarket of the Italian retail sector”, Waste Management, vol. 105, pp.594-603, 2020.
  • [17] P. Lavin and M. J. Vetter, “Using Lean Six Sigma to increase the effectiveness of an evidence-based quality improvement program”, Journal of Nursing Care Quality, vol.37 no.1, pp.81-86, 2022.
  • [18] E. V. Gijo and T. S. Rao, “Six Sigma implementation - Hurdles and more hurdles”, Total Quality Management & Business Excellence, vol.16 no.10, pp.721-725, 2005.
There are 18 citations in total.

Details

Primary Language English
Subjects Engineering
Journal Section Araştırma Makalesi
Authors

Saadet Aişeoğlu This is me 0000-0003-2467-0933

İzzettin Hakan Karaçizmeli 0000-0002-8540-8050

Publication Date September 30, 2022
Submission Date May 30, 2022
Acceptance Date September 20, 2022
Published in Issue Year 2022 Volume: 11 Issue: 3

Cite

IEEE S. Aişeoğlu and İ. H. Karaçizmeli, “REDUCING INVENTORY LEVELS IN A SUPERMARKET BY THE SIX SIGMA METHOD”, Bitlis Eren Üniversitesi Fen Bilimleri Dergisi, vol. 11, no. 3, pp. 828–835, 2022, doi: 10.17798/bitlisfen.1122251.

Bitlis Eren University
Journal of Science Editor
Bitlis Eren University Graduate Institute
Bes Minare Mah. Ahmet Eren Bulvari, Merkez Kampus, 13000 BITLIS