Oil Palm Industry Economic Journal Vol. 12 (1) March 2012 p. 1-7

A Study on Inventory Management of Malaysian Palm Oil Products

Ahmad Borhan A Nordin
Received:    Accepted:    Available Online:


Inventory management is important to balance organisational objectives, particularly on the appropriate level of stock for raw materials and production outputs as well. The amount of inventory has a direct impact on the responsiveness and efficiency of operations of a company. In general, it can reflect also on the performance of an industry. In the Malaysian palm oil industry, most of the processing activities are well-planned or geared towards fulfilling order as demanded or known as ‘back-to-back’ approach. Hence, the movements of palm products along the supply chain are rather fast to reach respective buyers on time. As a result, the inventory levels of palm products should be low but enough to meet the demand of processing activities.

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