Despite the importance to researchers, managers, and policy makers of how information technology (IT) contributes to organizational performance, there is uncertainty and debate about what we know and don't know. A review of the literature reveals that studies examining the association between information technology and organizational performance are divergent in how they conceptualize key constructs and their interrelationships. We develop a model of IT business value based on the resource-based view of the firm that integrates the various strands of research into a single framework. We apply the integrative model to synthesize what is known about IT business value and guide future research by developing propositions and suggesting a research agenda. A principal finding is that IT is valuable, but the extent and dimensions are dependent upon internal and external factors, including complementary organizational resources of the firm and its trading partners, as well as the competitive and macro environment. Our analysis provides a blueprint to guide future research and facilitate knowledge accumulation and creation concerning the organizational performance impacts of information technology.

Review: information technology and organizational performance: an integrative model of it business value

Publisher Summary This chapter reviews the supply chain coordination with contracts. Numerous supply chain models are discussed. In each model, the supply chain optimal actions are identified. The chapter extends the newsvendor model by allowing the retailer to choose the retail price in addition to the stocking quantity. Coordination is more complex in this setting because the incentives provided to align one action might cause distortions with the other action. The newsvendor model is also extended by allowing the retailer to exert costly effort to increase demand. Coordination is challenging because the retailer's effort is noncontractible—that is, the firms cannot write contracts based on the effort chosen. The chapter also discusses an infinite horizon stochastic demand model in which the retailer receives replenishments from a supplier after a constant lead time. Coordination requires that the retailer chooses a large basestock level.

Supply Chain Coordination with Contracts

Relationships between operational practices and performance among early adopters of green supply chain management practices in chinese manufacturing enterprises

Perspectives in supply chain risk management

The authors examine the implications of electronic shopping for consumers, retailers, and manufacturers. They assume that near-term technological developments will offer consumers unparalleled opportunities to locate and compare product offerings. They examine these advantages as a function of typical consumer goals and the types of products and services being sought and offer conclusions regarding consumer incentives and disincentives to purchase through interactive home shopping vis-à-vis traditional retail formats. The authors discuss implications for industry structure as they pertain to competition among retailers, competition among manufacturers, and retailer-manufacturer relationships.

Interactive home shopping: Consumer, retailer, and manufacturer incentives to participate in

In this paper, we consider a production-inventory model which assumes that learning occurs as a function of the number of units produced. We analyze two cases: the first case allows for no forgetting between production runs and the second case (a generalization of the first case) allows for some given degree of forgetting between production runs. In the first case, we show that learning only has an impact on initial lot-sizes for large order quantities and that steady state lot-sizes will approach the traditional EOQ amount. In addition, we show that succeeding lot-sizes are always nonincreasing. Applying these results to the second case when forgetting occurs, we develop efficient heuristic algorithms with complexity O(N logN) to determine order quantities. Results from our algorithms are compared to optimal solutions; these comparisons indicate that our algorithms usually provide solutions within one percent of the optimal cost.

Production Lot-Sizing Under Learning Effects: An Efficient Solution Technique

We analyze a model of rental and return process where limited inventory of a product is rented to two customer classes that differ in their return behavior and penalty costs. The rental demand is a decreasing function of time. We consider two cases: where a demand that is not met is lost and where an unmet demand returns. We show that to minimize penalty cost, the optimal allocation policy may give priority to different classes at different points in time and may decline lower-class demand for some time. Computational results show the benefit of the optimal allocation policy over a priority scheme reportedly used in practice.

Priority Allocation in a Rental Model with Decreasing Demand

In this paper, we discuss the replenishment decision of seasonal products in a two-echelon distribution system consisting of a supplier and multiple retailers. Because of long manufacturing lead time, the supplier orders its entire stock for the season well in advance. The retailers, on the other hand, can replenish their inventory from the supplier throughout the season as demand realizes. Demand at each retailer follows a Poisson process. Each retailer order incurs a fixed cost, and the usual understocking and overstocking costs occur. When retailer lead time is negligible, we show that it is optimal for the retailer to follow a time-based, order-up-to policy and order only when inventory is depleted. We also characterize the structure of the optimal policy and propose a number of heuristics for easier computation. For the supplier, we express the distribution of total demand. This allows the supplier to solve a classic newsvendor problem to determine the total stock for the season. We find that the optimal retailer policy can sometimes cause large demand variation for the supplier, resulting in lower supplier profit. In centralized settings, this may even result in lower system profit than some naive retailer heuristics, creating inefficiency in the supply chain. We offer insights on potential causes and managerial implications.

https://faculty.washington.edu/yongpin/single-period_paper.pdf

A Single-Supplier, Multiple-Retailer Model with Single-Season, Multiple-Ordering Opportunities, and Fixed Ordering Cost

A repairable item inventory system with diagnostic and repair service

In this paper, we consider an unreliable production process which produces nondefective items when operating in control, but produces defective items with a probability α when the process has shifted to an out-of-control state. Following a JIT philosophy, we stop the entire line and repair the machine as soon as detect that the process has shifted to an out-of-control state. To test whether a process shift has occurred, we inspect the last m units for every n units produced and stop the machine if a defective unit is found. More important, we place a “delay buffer” immediately after the unreliable process, which serves to delay the movement of items from the unreliable machine to other processes (or customers) downstream in the production system. When we detect that the machine has shifted to an out-of-control state, we stop the entire line and examine all previously uninspected items in the delay buffer; in this way, the buffer serves to reduce the expected rework and penalty (e.g., warranty) costs downs...

Kamran Moinzadeh

Papers

Production Lot-Sizing Under Learning Effects: An Efficient Solution Technique

Priority Allocation in a Rental Model with Decreasing Demand

A Single-Supplier, Multiple-Retailer Model with Single-Season, Multiple-Ordering Opportunities, and Fixed Ordering Cost

A repairable item inventory system with diagnostic and repair service

Measuring the impact of a delay buffer on quality costs with an unreliable production process