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Supply Chain (supply + chain)
Kinds of Supply Chain Terms modified by Supply Chain Selected AbstractsUPSTREAM VOLATILITY IN THE SUPPLY CHAIN: THE MACHINE TOOL INDUSTRY AS A CASE STUDYPRODUCTION AND OPERATIONS MANAGEMENT, Issue 3 2000EDWARD G. ANDERSON JR. Cyclicality is a well-known and accepted fact of life in market-driven economies. Less well known or understood, however, is the phenomenon of amplification as one looks "upstream" in the industrial supply chain. We examine the amplification phenomenon and its implications through the lens of one upstream industry that is notorious for the intensity of the business cycles it faces: the machine tool industry. Amplification of demand volatility in capital equipment supply chains, e. g., machine tools, is particularly large relative to that seen in distribution and component parts supply chains. We present a system dynamics simulation model to capture demand volatility amplification in capital supply chains. We explore the lead-time, inventory, production, productivity, and staffing implications of these dynamic forces. Several results stand out. First, volatility hurts productivity and lowers average worker experience. Second, even though machine tool builders can do little to reduce the volatility in their order streams through choice of forecast rule, a smoother forecasting policy will lead companies to retain more of their skilled work force. This retention of skilled employees is often cited as one of the advantages that European and Japanese companies have had relative to their U. S. competitors. Our results suggest some insights for supply chain design and management: downstream customers can do a great deal to reduce the volatility for upstream suppliers through their choice of order forecast rule. In particular, companies that use smoother forecasting policies tend to impose less of their own volatility upon their supply base and may consequently enjoy system-wide cost reduction. [source] HOW TO RECTIFY UNFAIR TRADE PRACTICES AND TO ESTABLISH APPROPRIATE SUPPLY CHAINS AND BETTER BUSINESS CULTURE UNDER THE GLOBAL MARKET ECONOMYPACIFIC ECONOMIC REVIEW, Issue 5 2009Tsugio Ide Banning unfair trade practices stands alongside private monopolization and the unjust restraint of trade as a key theme in competition policy. However, it poses much greater difficulties to deal with the matter than either private monopolization or unjust restraint of trade. In recent years, ongoing economic globalization, advances in information communication technology and other factors have wrought major changes in the traditional supply chain: for example, in subcontracting structure. Given the role of small and medium enterprises in underpinning economic growth, lifting the basic quality and performance level of these firms and improving business conditions for them have emerged as key policy themes. New efforts are needed to establish fair trade as a business practice and to create a new business culture in corporation with competition policy, small and medium enterprise policy and business ethics, such as Corporate Social Responsibility (CSR) practices. [source] Supply Chain Conflict Due to Store Brands: The Value of Wholesale Price Commitment in a Retail Supply Chain,DECISION SCIENCES, Issue 2 2010Ana Groznik ABSTRACT Store brands are of increasing importance in retail supply chains, often causing channel conflict, as the retailer's product directly competes with the manufacturer's national brand. Extant research on the resulting channel interactions either assumes the national brand manufacturer can credibly commit to maintaining a wholesale price or that he lacks such ability. However, these two scenarios imply very different supply chain interactions, as only a national brand manufacturer with commitment ability can strategically adjust a national brand wholesale price to prevent a store brand introduction by the retailer. We specifically analyze the impact of this assumption on the manufacturer, the retailer, and the customers. We determine when long-term contracts that provide the manufacturer with such commitment ability can improve supply chain profitability. [source] Supply Management Under High Goal Incongruence: An Empirical Examination of Disintermediation in the Aerospace Supply ChainDECISION SCIENCES, Issue 3 2008Christian L. Rossetti ABSTRACT Aftermarket sales and profits are becoming an increasingly important part of an original equipment manufacturer's (OEM) business model. Because replacement parts often do not require further manufacturing, OEMs act as intermediaries in the aftermarket. As with any intermediary, the OEM must concern itself with suppliers disintermediating its supply chain selling replacement parts directly to the OEM's customers. We frame supply chain disintermediation (SCD) as a principal,agent contracting problem between an OEM buyer and a supplier. Hypotheses relate contract conditions, goal incongruence, supplier capabilities and contract enforcement to SCD. The data are collected from the aerospace industry using a multimethod study, combining an Internet-based survey with archival data. Causal modeling with structural equation modeling (SEM) shows general support for the hypotheses. Particularly, SCD is positively related to buyer,supplier goal incongruence. The agency model offers insights that differ from previous transaction-cost-based models of buyer,supplier relationships. OEM buyers with a lucrative aftermarket should consider aligning goals through incentives rather than relying entirely on economic hostages associated with specific assets. [source] Channel Coordination for a Supply Chain with a Risk-Neutral Manufacturer and a Loss-Averse Retailer,DECISION SCIENCES, Issue 3 2007Charles X. Wang ABSTRACT This articles considers a decentralized supply chain in which a single manufacturer is selling a perishable product to a single retailer facing uncertain demand. It differs from traditional supply chain contract models in two ways. First, while traditional supply chain models are based on risk neutrality, this article takes the viewpoint of behavioral principal,agency theory and assumes the manufacturer is risk neutral and the retailer is loss averse. Second, while gain/loss (GL) sharing is common in practice, there is a lack of analysis of GL-sharing contracts in the supply chain contract literature. This article investigates the role of a GL-sharing provision for mitigating the loss-aversion effect, which drives down the retailer order quantity and total supply chain profit. We analyze contracts that include GL-sharing-and-buyback (GLB) credit provisions as well as the special cases of GL contracts and buyback contracts. Our analytical and numerical results lend insight into how a manufacturer can design a contract to improve total supply chain, manufacturer, and retailer performance. In particular, we show that there exists a special class of distribution-free GLB contracts that can coordinate the supply chain and arbitrarily allocate the expected supply chain profit between the manufacturer and retailer; in contrast with other contracts, the parameter values for contracts in this class do not depend on the probability distribution of market demand. This feature is meaningful in practice because (i) the probability distribution of demand faced by a retailer is typically unknown by the manufacturer and (ii) a manufacturer can offer the same contract to multiple noncompeting retailers that differ by demand distribution and still coordinate the supply chains. [source] e-Integration in the Supply Chain: Barriers and Performance,DECISION SCIENCES, Issue 4 2002Markham T. Frohlich ABSTRACT Current opinion holds that Internet-based supply chain integration with upstream suppliers and downstream customers (called "e-integration" in this paper) is superior to traditional ways of doing business. This proposition remains untested, however, and similarly we know little about what are the upstream, internal, and downstream barriers to implementing e-integration. This paper empirically addressed these questions using data from a large single nation study, and found (1) a positive link between e-integration and performance, and (2) that internal barriers impeded e-integration more than either upstream supplier barriers or downstream customer barriers. Findings from this study contribute to our theoretical understanding of implementing change in contemporary supply chains, and have important implications for manufacturers interested in improving their supply chain's performance using the Internet. [source] The Impact of Forecast Errors on Early Order Commitment in a Supply Chain,DECISION SCIENCES, Issue 2 2002Xiande Zhao ABSTRACT Supply chain partnership involves mutual commitments among participating firms. One example is early order commitment, wherein a retailer commits to purchase a fixed-order quantity and delivery time from a supplier before the real need takes place. This paper explores the value of practicing early order commitment in the supply chain. We investigate the complex interactions between early order commitment and forecast errors by simulating a supply chain with one capacitated supplier and multiple retailers under demand uncertainty. We found that practicing early order commitment can generate significant savings in the supply chain, but the benefits are only valid within a range of order commitment periods. Different components of forecast errors have different cost implications to the supplier and the retailers. The presence of trend in the demand increases the total supply chain cost, but makes early order commitment more appealing. The more retailers sharing the same supplier, the more valuable for the supply chain to practice early order commitment. Except in cases where little capacity cushion is available, our findings are relatively consistent in the environments where cost structure, number of retailers, capacity utilization, and capacity policy are varied. [source] Pollution and Cost in the Coke-Making Supply Chain in Shanxi Province, ChinaJOURNAL OF INDUSTRIAL ECOLOGY, Issue 3-4 2002Applying an Integrated System Model to Siting, Transportation Trade-Offs Summary An integrated system trade-off model has been developed to assess costs and pollution associated with transportation in the coke-making supply chain in Shanxi Province, China. A transportation-flow, cost-minimization solver is combined with models for calculating coke-making plant costs, estimating transportation costs from a geographic information system road and rail database, and aggregating coke-making capacity among plants. Model outputs of economic cost, nitrogen oxides (NOx) emissions, and transport distributions are visualized using an Internet-based graphic user interface. Data for the model were collected on survey trips to Shanxi Province as well as from secondary references and proxies. The modularity and extensibility of the system trade-off model facilitate introduction of new data sets in order to examine various planning scenarios. Scenarios of coke-making plant aggregation, rail infrastructure improvement, and technology transfer were evaluated using the model. Costs and pollution emissions can be reduced by enlarging coke-making plants near the rail stations and closing down other plants. Preferential minimization of transportation costs gives a lower total cost than simply minimizing plant costs. Therefore, policy makers should consider transportation costs when planning the reallocation of coke-making capacity in Shanxi Province. Increasing rail-transport capacity is less effective than aggregating plant capacity. On the other hand, transfer of low-pollution truck technology results in a large emission reduction, however, reflecting the importance of truck transportation in the Shanxi Province coke-making industry. [source] Understanding and Managing the Services Supply ChainJOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 4 2004Lisa M. Ellram SUMMARY Services have become increasingly important as the driving force in the U.S. economy. However, there has been little research to date on services supply chains. It is believed that service businesses can benefit by applying some best practices from manufacturing to their processes. However, the inherent differences in services create a need for supply chain management tools specific to the services sector. This article documents the growing importance of the services sector and of services purchasing. Next, it develops a supply chain framework appropriate for a services supply chain by comparing and contrasting the applicability of three product-based manufacturing models: Global Supply Chain Forum Framework, SCOR and Hewlett-Packard's Supply Chain Management Model. Finally, this research describes the challenges for procurement professionals managing purchases for a services supply chain and provides suggestions for use of supply chain management theory, and practices for improvement. [source] Gaining and Losing Pieces of the Supply ChainJOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 1 2003P. Fraser Johnson SUMMARY This research focused on changes in supply chain responsibilities. The primary research question was: What are the reasons (drivers) for major changes in supply chain responsibilities? Over 200 such changes, comprising 158 additions and 44 deletions, were documented in the research. The findings are based on 10 case studies in large multi-business unit companies, seven head quartered in the United States and three in Europe, representing a variety of industries. Findings indicated three drivers of change for supply chain responsibilities. The chief purchasing officer and his or her staff members had a great deal of influence, particularly in additions to category 1 (acquisition of specific organizational needs) and category 2 (activities within the total supply chain). [source] Product Technology Transfer in the Upstream Supply ChainTHE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 6 2003Mohan V. Tatikonda This article addresses the transfer of new product technologies from outside the firm for integration into a new product system as part of a product development effort. Product technology transfer is a key activity in the complex process of new product development and is the fundamental link in the technology supply chain. Product technology transfer too often is dealt with in an ad-hoc fashion. Purposeful management of the product technology transfer process leads to more effective transfers in terms of timeliness, cost, functional performance, and competence building. Better management of product technology transfer gives firms access to a greater variety of new technology options, improves a firm's ability to offer significantly differentiated products, deepens the firm's competitive competencies, and positively influences sustained product development success. The central objective of this article is to gain insight into product technology transfer so that companies can manage this process more successfully and so that researchers can investigate this critical activity further. This article describes the technology supply chain as a unique form of a supply chain that poses a set of managerial challenges and requirements distinguishing it from the more traditional component supply chain. Because a single product technology transfer project is the fundamental piece in the technology supply chain, understanding this piece well is key to leveraging the extended technology supply chain and to improving overall product development performance. This article integrates literatures on new product development, supply chain management, and technology management and builds on organizational theory to present a conceptual model of determinants of product technology transfer success. The core proposition is that product technology transfer effectiveness is greatest when companies carefully match (or "fit") the type of technology to be transferred (the "technology uncertainty") with the type of relationship between the technology supplier and recipient (the "interorganizational interaction"). A quite detailed framework characterizing technology uncertainty along the dimensions of technology novelty, complexity, and tacitness is presented to help in assessing the challenges associated with transferring a particular product technology. This article also considers detailed elements characterizing the interorganizational interactions between the technology source and recipient firms. This helps firms consider the appropriate means to facilitate the interfirm process of technology transfer. Overall, this article provides practical insight into characterizing technologies and into improving the product technology transfer process. This article also provides a strong theoretical foundation to aid future research on product technology transfer in the technology supply chain. [source] Flow Coordination and Information Sharing in Supply Chains: Review, Implications, and Directions for Future ResearchDECISION SCIENCES, Issue 4 2002Funda Sahin ABSTRACT Advances in information technology, particularly in the e-business arena, are enabling firms to rethink their supply chain strategies and explore new avenues for inter-organizational cooperation. However, an incomplete understanding of the value of information sharing and physical flow coordination hinder these efforts. This research attempts to help fill these gaps by surveying prior research in the area, categorized in terms of information sharing and flow coordination. We conclude by highlighting gaps in the current body of knowledge and identifying promising areas for future research. [source] Channel Strategies and Stocking Policies in Uncapacitated and Capacitated Supply Chains,DECISION SCIENCES, Issue 2 2002Jayashree Mahajan ABSTRACT A supply chain consisting of a single supplier distributing two independent products through multiple retailers is analyzed in this paper. The supplier needs to incentivize its retailers to adopt stocking policies that are mutually advantageous and that result in the optimal level of market coverage. The focus is on determining the optimal stocking policies for retailers and the resulting distribution strategy given that the supplier has either unlimited or limited capacity. The results provide insights on the optimal distribution strategy and stocking policies for the supply chain. In general, the paper shows that it is optimal for the supplier to use an intensive distribution strategy (i.e., the products are stocked by all retailers). Selective or exclusive strategies are optimal only when retailers are risk averse, stocking synergies exist, and there are differences in demand or supply uncertainties across products. The analysis also shows that retailers hold larger stocks of a product which generates higher supplier margins but only when the supplier has unlimited capacity. If the supplier has limited capacity, then their margins have no effect on retailers' stocking decisions. Contrary to conventional wisdom, retailers hold larger stocks of a product that has less demand uncertainty as compared to one that has more demand uncertainty. [source] The Value of Production Schedule Integration in Supply ChainsDECISION SCIENCES, Issue 4 2001Lee Krajewski Abstract This study explores the value of integrated production schedules for reducing the negative effects of schedule revisions in supply chains involving buyer and supplier firms. A stochastic cost model is developed to evaluate the total supply chain cost with integrated purchasing and scheduling policies. The model minimizes the costs associated with assembly rate adjustment, safety stock, and schedule changes for all supply chain members. Through experimentation, the paper examines the impact of several environmental factors on the value of schedule integration. This study finds that schedule integration can lead to overall cost savings in a supply chain, but some firms may have to absorb costs in excess of those they would incur with independent scheduling. Environments with high inventory holding costs and long supplier lead times may not find it beneficial to adopt an integrated schedule. Forecast effectiveness plays a critical role in realizing the benefits of schedule integration. The paper concludes with suggestions for future research. [source] Impact of Supermarkets and Fast,Food Chains on Horticulture Supply Chains in ArgentinaDEVELOPMENT POLICY REVIEW, Issue 4 2002Graciela Ghezán In the 1990s, the supermarket and fast,food sectors grew rapidly in Argentina. Both were dominated by multinational firms, and their growth drove profound change in food market systems and farming. This article analyses the impact of this development on fruit and vegetables supply chains, in particular the way the advent of McDonald's affected the supply chain for frozen French fried potatoes. It shows that there is a tendency for such changes to favour medium and large producers, with evidence of the exclusion of small farmers. [source] All Supply Chains Don't Flow Through: Understanding Supply Chain Issues in Product RecallsMANAGEMENT AND ORGANIZATION REVIEW, Issue 2 2008Marjorie A. Lyles abstract Our paper conceptualizes and highlights the role of the supply chains in China's product recall problems. We raise questions about the interrelationships of the focal manufacturer and the supplier firms and the consequences of these relationships. We address some of the causes of the current situation, including a discussion of deep supply chains, the importance of relationships, the role of trust and the impact of cultural misunderstandings. We suggest many future research questions to further understand how the supply chain can cause or deter product recalls. [source] Closed-Loop Supply Chains: An Introduction to the Feature Issue (Part 1)PRODUCTION AND OPERATIONS MANAGEMENT, Issue 3 2006V. Daniel R. Guide Jr. Closed-loop supply chains (CLSC) have product returns at the center of attention. Our view is that CLSC are best managed from a business perspective where organizations seek to maximize value recovery. The research in the feature issue, and our experiences, shows that there are still numerous, unresolved, managerially relevant issues that deserve further investigation. We also observe that there is a pressing need to validate the assumptions in our models using interdisciplinary, industry-driven research. The time is right for production and operations management to play a central role in the sustainability movement slowly taking hold in practice. [source] Coordination of Supply Chains with Risk-Averse AgentsPRODUCTION AND OPERATIONS MANAGEMENT, Issue 2 2004Xianghua Gan The extant supply chain management literature has not addressed the issue of coordination in supply chains involving risk-averse agents. We take up this issue and begin with defining a coordinating contract as one that results in a Pareto-optimal solution acceptable to each agent. Our definition generalizes the standard one in the risk-neutral case. We then develop coordinating contracts in three specific cases: (i) the supplier is risk neutral and the retailer maximizes his expected profit subject to a downside risk constraint; (ii) the supplier and the retailer each maximizes his own mean-variance trade-off; and (iii) the supplier and the retailer each maximizes his own expected utility. Moreover, in case (iii), we show that our contract yields the Nash Bargaining solution. In each case, we show how we can find the set of Pareto-optimal solutions, and then design a contract to achieve the solutions. We also exhibit a case in which we obtain Pareto-optimal sharing rules explicitly, and outline a procedure to obtain Pareto-optimal solutions. [source] The Emergence of Total Responsibility Management Systems: J. Sainsbury's (plc) Voluntary Responsibility Management Systems for Global Food Retail Supply ChainsBUSINESS AND SOCIETY REVIEW, Issue 4 2006JENNIFER LEIGH First page of article [source] The implementation of socially responsible purchasingCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 1 2010Charlotte Leire Abstract Social and ethical issues in the supply chain are gaining importance in all types of organizations. Therefore some public and private organizations have already started to introduce socially responsible purchasing practices. However, current practices are limited and seem unsystematic. There is also a difference between few front-running organizations and the rest. It is therefore useful at this early stage to disseminate the knowledge and experiences based on the best-performing organizations. This paper does that by developing a model of the socially responsible purchasing process that is based on the empirical and secondary data. The model reveals the five elementary steps that are necessary in the implementation of systematic socially responsible purchasing practices: developing internal policies; setting purchasing criteria that regard social issues; applying assurance practices; managing supplier relations; and building internal capacity. The model also points to the different activities in the process and their associated challenges. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment. [source] Environmental supply chain management, ISO 14001 and RoHS.CORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 6 2008How are small companies in the electronics sector managing? Abstract This study explores the use of environmental management systems for initiating and controlling environmental improvements in the context of supply chain cooperation. It examines how environmental requirements are reaching smaller companies in the electronics supply chain, especially in the light of recent legal changes such as enforcement of the RoHS Directive. It is based on qualitative interviews with environmental and purchasing managers of 21 small and medium-sized companies. The results point out a lack of significant drivers for these companies to implement proactive measures when dealing with environmental issues, owing to limited customer pressure. RoHS and legal compliance are the only environmental customer criteria to be met, while ISO 14001 works as an optional supplier selection criterion. In consequence, companies are not focusing on environmental work within their supply chains, and the potential of influencing the environmental profile of suppliers by shaping their ISO 14001 is not used. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment. [source] Assessing corporate environmental reporting motivations: differences between ,close-to-market' and ,business-to-business' companiesCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 3 2008Janet Haddock-Fraser Abstract In this paper we examine whether proximity to market affects the extent and form of corporate environmental reporting of companies listed in the FTSE 250. The reason for examining this issue is that it is frequently asserted, but not demonstrated, that closeness to market will correlate positively with proactive communication of environmental activities. Our results show that this assertion is, in particular reporting contexts, true. In particular, we find that companies who are close to market, or are brand-name companies, are highly likely to adopt one of the several forms of environmental reporting considered (particularly reporting on product life-cycle or supply chain and reporting through the BitC benchmark system). We also show that companies proximate to market are more likely to be the target of media attention, but are unable within the bounds of the research to assess whether this is a cause of increased environmental reporting or an effect of it. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment. [source] Supply Chain Strategy, Product Characteristics, and Performance Impact: Evidence from Chinese Manufacturers,DECISION SCIENCES, Issue 4 2009Yinan Qi ABSTRACT Supply chain management has become one of the most popular approaches to enhance the global competitiveness of business corporations today. Firms must have clear strategic thinking in order to effectively organize such complicated activities, resources, communications, and processes. An emerging body of literature offers a framework that identifies three kinds of supply chain strategies: lean strategy, agile strategy, and lean/agile strategy based on in-depth case studies. Extant research also suggests that supply chain strategies must be matched with product characteristics in order for firms to achieve better performance. This article investigates supply chain strategies and empirically tests the supply chain strategy model that posits lean, agile, and lean/agile approaches using data collected from 604 manufacturing firms in China. Cluster analyses of the data indicate that Chinese firms are adopting a variation of lean, agile, and lean/agile supply chain strategies identified in the western literature. However, the data reveal that some firms have a traditional strategy that does not emphasize either lean or agile principles. These firms perform worse than firms that have a strategy focused on lean, agile, or lean/agile supply chain. The strategies are examined with respect to product characteristics and financial and operational performance. The article makes significant contributions to the supply chain management literature by examining the supply chain strategies used by Chinese firms. In addition, this work empirically tests the applicability of supply chain strategy models that have not been rigorously tested empirically or in the fast-growing Chinese economy. [source] Health Care Supply Chain Design: Toward Linking the Development and Delivery of Care Globally,DECISION SCIENCES, Issue 2 2009Kingshuk K. Sinha ABSTRACT This article is motivated by the gap between the growing demand and available supply of high-quality, cost-effective, and timely health care, a problem faced not only by developing and underdeveloped countries but also by developed countries. The significance of this problem is heightened when the economy is in recession. In an attempt to address the problem, in this article, first, we conceptualize care as a bundle of goods, services, and experiences,including diet and exercise, drugs, devices, invasive procedures, new biologics, travel and lodging, and payment and reimbursement. We then adopt a macro, end-to-end, supply chain,centric view of the health care sector to link the development of care with the delivery of care. This macro, supply chain,centric view sheds light on the interdependencies between key industries from the upstream to the downstream of the health care supply chain. We propose a framework, the 3A-framework, that is founded on three constructs,affordability, access, and awareness,to inform the design of supply chain for the health care sector. We present an illustrative example of the framework toward designing the supply chain for implantable device,based care for cardiovascular diseases in developing countries. Specifically, the framework provides a lens for identifying an integrated system of continuous improvement and innovation initiatives relevant to bridging the gap between the demand and supply for high-quality, cost-effective, and timely care. Finally, we delineate directions of future research that are anchored in and follow from the developments documented in the article. [source] Paper Versus Electronic Medical Records: The Effects of Access on Physicians' Decisions to Use Complex Information Technologies,DECISION SCIENCES, Issue 2 2009Virginia Ilie ABSTRACT This study examines physicians' responses to complex information technologies (IT) in the health care supply chain. We extend individual-level IT adoption models by incorporating a new construct: system accessibility. The main premise of the study is, when faced with a decision between alternate IT systems, individual users tend to select and make use of the technology or system that is most readily accessible. We discuss both physical and logical dimensions of accessibility as they relate to adoption of electronic medical records (EMR). Physical accessibility refers to the availability of computers that can be used to access EMR, while logical accessibility refers to the ease or difficulty of logging into the system. Using data from a survey of 199 physicians practicing in a large U.S. hospital, we show that, when deciding between the paper chart and EMR, accessibility is an important consideration in a physician's decision to use the system. Both dimensions of accessibility act as barriers to EMR use intentions through their indirect effect on physicians' perceptions of EMR usefulness and ease of use. Logical access also has a direct effect on EMR use intentions. We conclude that accessibility is an important factor that limits acceptance of complex IT such as EMR. [source] Channel Coordination for a Supply Chain with a Risk-Neutral Manufacturer and a Loss-Averse Retailer,DECISION SCIENCES, Issue 3 2007Charles X. Wang ABSTRACT This articles considers a decentralized supply chain in which a single manufacturer is selling a perishable product to a single retailer facing uncertain demand. It differs from traditional supply chain contract models in two ways. First, while traditional supply chain models are based on risk neutrality, this article takes the viewpoint of behavioral principal,agency theory and assumes the manufacturer is risk neutral and the retailer is loss averse. Second, while gain/loss (GL) sharing is common in practice, there is a lack of analysis of GL-sharing contracts in the supply chain contract literature. This article investigates the role of a GL-sharing provision for mitigating the loss-aversion effect, which drives down the retailer order quantity and total supply chain profit. We analyze contracts that include GL-sharing-and-buyback (GLB) credit provisions as well as the special cases of GL contracts and buyback contracts. Our analytical and numerical results lend insight into how a manufacturer can design a contract to improve total supply chain, manufacturer, and retailer performance. In particular, we show that there exists a special class of distribution-free GLB contracts that can coordinate the supply chain and arbitrarily allocate the expected supply chain profit between the manufacturer and retailer; in contrast with other contracts, the parameter values for contracts in this class do not depend on the probability distribution of market demand. This feature is meaningful in practice because (i) the probability distribution of demand faced by a retailer is typically unknown by the manufacturer and (ii) a manufacturer can offer the same contract to multiple noncompeting retailers that differ by demand distribution and still coordinate the supply chains. [source] The Impact of E-Replenishment Strategy on Make-to-Order Supply Chain PerformanceDECISION SCIENCES, Issue 1 2005E. Powell Robinson Jr. ABSTRACT This research investigates the impact of electronic replenishment strategy on the operational activities and performance of a two-stage make-to-order supply chain. We develop simulation-based rolling schedule procedures that link the replenishment processes of the channel members and apply them in an experimental analysis to study manual, semi-automated, and fully automated e-replenishment strategies in decentralized and coordinated decision-making supply chain structures. The average operational cost reductions for moving from a manual-based system to a fully automated system are 19.6, 29.5, and 12.5%, respectively, for traditional decentralized, decentralized with information sharing, and coordinated supply chain structures. The savings are neither equally distributed among participants, nor consistent across supply chain structures. As expected, for the fully coordinated system, total costs monotonically decrease with higher levels of automation. However, for the two decentralized structures, under which most firms operate today, counter-intuitive findings reveal that the unilateral application of e-procurement technology by the buyer may lower his purchasing costs, but increase the seller's and system's costs. The exact nature of the relationship is determined by the channel's operational flexibility. Broader results indicate that while the potential economic benefit of e-replenishment in a decentralized system is substantial, greater operational improvements maybe possible through supply chain coordination. [source] A Modeling Framework for Supply Chain Simulation: Opportunities for Improved Decision Making,DECISION SCIENCES, Issue 1 2005D. J. Van Der Zee ABSTRACT Owing to its inherent modeling flexibility, simulation is often regarded as the proper means for supporting decision making on supply chain design. The ultimate success of supply chain simulation, however, is determined by a combination of the analyst's skills, the chain members' involvement, and the modeling capabilities of the simulation tool. This combination should provide the basis for a realistic simulation model, which is both transparent and complete. The need for transparency is especially strong for supply chains as they involve (semi)autonomous parties each having their own objectives. Mutual trust and model effectiveness are strongly influenced by the degree of completeness of each party's insight into the key decision variables. Ideally, visual interactive simulation models present an important communicative means for realizing the required overview and insight. Unfortunately, most models strongly focus on physical transactions, leaving key decision variables implicit for some or all of the parties involved. This especially applies to control structures, that is, the managers or systems responsible for control, their activities and their mutual attuning of these activities. Control elements are, for example, dispersed over the model, are not visualized, or form part of the time-indexed scheduling of events. In this article, we propose an alternative approach that explicitly addresses the modeling of control structures. First, we will conduct a literature survey with the aim of listing simulation model qualities essential for supporting successful decision making on supply chain design. Next, we use this insight to define an object-oriented modeling framework that facilitates supply chain simulation in a more realistic manner. This framework is meant to contribute to improved decision making in terms of recognizing and understanding opportunities for improved supply chain design. Finally, the use of the framework is illustrated by a case example concerning a supply chain for chilled salads. [source] Channel Strategies and Stocking Policies in Uncapacitated and Capacitated Supply Chains,DECISION SCIENCES, Issue 2 2002Jayashree Mahajan ABSTRACT A supply chain consisting of a single supplier distributing two independent products through multiple retailers is analyzed in this paper. The supplier needs to incentivize its retailers to adopt stocking policies that are mutually advantageous and that result in the optimal level of market coverage. The focus is on determining the optimal stocking policies for retailers and the resulting distribution strategy given that the supplier has either unlimited or limited capacity. The results provide insights on the optimal distribution strategy and stocking policies for the supply chain. In general, the paper shows that it is optimal for the supplier to use an intensive distribution strategy (i.e., the products are stocked by all retailers). Selective or exclusive strategies are optimal only when retailers are risk averse, stocking synergies exist, and there are differences in demand or supply uncertainties across products. The analysis also shows that retailers hold larger stocks of a product which generates higher supplier margins but only when the supplier has unlimited capacity. If the supplier has limited capacity, then their margins have no effect on retailers' stocking decisions. Contrary to conventional wisdom, retailers hold larger stocks of a product that has less demand uncertainty as compared to one that has more demand uncertainty. [source] The Impact of Forecast Errors on Early Order Commitment in a Supply Chain,DECISION SCIENCES, Issue 2 2002Xiande Zhao ABSTRACT Supply chain partnership involves mutual commitments among participating firms. One example is early order commitment, wherein a retailer commits to purchase a fixed-order quantity and delivery time from a supplier before the real need takes place. This paper explores the value of practicing early order commitment in the supply chain. We investigate the complex interactions between early order commitment and forecast errors by simulating a supply chain with one capacitated supplier and multiple retailers under demand uncertainty. We found that practicing early order commitment can generate significant savings in the supply chain, but the benefits are only valid within a range of order commitment periods. Different components of forecast errors have different cost implications to the supplier and the retailers. The presence of trend in the demand increases the total supply chain cost, but makes early order commitment more appealing. The more retailers sharing the same supplier, the more valuable for the supply chain to practice early order commitment. Except in cases where little capacity cushion is available, our findings are relatively consistent in the environments where cost structure, number of retailers, capacity utilization, and capacity policy are varied. [source] | |||||||||||||||||||||||||||||||||||||