Showing papers in "International Journal of Information Systems and Supply Chain Management in 2008"

Facing the Challenges of RFID Data Management

Abstract: Radio frequency identification (RFID) has generated vast amounts of interest in the supply chain, logistics, and the manufacturing area. RFID can be used to significantly improve the efficiency of business processes by providing automatic data identification and capture. Enormous data would be collected as items leave a trail of data while moving through different locations. Some important challenges such as false read, data overload, real-time acquisition of data, data security, and privacy must be dealt with. Good quality data is needed because business decisions depend on these data. Other important issues are that business processes must change drastically as a result of implementing RFID, and data must be shared between suppliers and retailers. The main objective of this article is focused on data management challenges of RFID, and it provides potential solutions for each identified risk.

A Supplementary Framework for Evaluation of Integrated Logistics Service Provider

Abstract: As a result of globalization, supply chains of many large business organizations nowadays tend to cover wider geographic areas spanning across different countries and continents. The growth in length and complexity gradually replaces the traditional linear supply chains with extended supply networks comprising not only suppliers, manufacturers, distributors, and end customers, but also service providers. With the increasing use of third-party logistics (3PL) providers by international firms seeking integrated logistics services, many global 3PL providers are forming partnerships with large corporations to take care of the latter’s logistics operations in different regions. The selection of the right 3PL provider for alliance is therefore paramount to the success of global supply chain management. This article investigates the significance of this subject and proposes a supplementary framework for evaluation of 3PL providers as global logistics partners for international firms. The framework focuses on the core competencies of 3PL providers and their abilities to attain economies of scale helping users achieve their outsourcing objectives.

When Does RFID Make Business Sense for Managing Supply Chain

Abstract: Radio frequency identification (RFID) is believed to change how supply chains operate today. While RFID’s promise for improved inventory visibility and automation in inventory management is making many supply chain players hopeful for increased sales and reduced operating costs, these benefits do come at a cost and involve risks. This article presents a financial returns analysis that captures RFID’s costs and benefits, and quantifies the financial risks of implementing RFID for various business sizes and products with different unit profits to understand when RFID makes business sense. More precisely, the returns analysis is performed using an econometric model to understand how break-even sales volumes, unit profits, tag prices, return on investment, and risks vary between a manufacturer and a retailer in a supply chain. The results are extended to multiproduct cases as well. A sensitivity analysis is also performed to understand the returns in pessimistic and optimistic scenarios.

The Impact of Information Technologies on the US Beef Industry's Supply Chain

Abstract: Historically, the growth of the beef industry has been hampered by the various entities (breeders, cow-calf producers, stockers, backgrounders) within the beef industry’s supply chain. The primary obstacles to growth are the large number of participants in the upstream partners and the lack of coordination between them. Over the last decade significant advances have been made in information technologies. Many new companies have been founded to promote these technical advances. This research looks at the upstream participants, primarily the buyer agencies and principles between the cow-calf producers and the meat packing companies, to determine the degree to which information technologies are currently being utilized and the degree to which these new technologies have driven improvements within the beef industry’s supply chain. We find through our survey that, by and large, the beef industry does not use information technologies to their benefit and that the U.S. beef supply chain is not yet strategically poised to enable the use of these technologies.

A Strategic Framework for Managing Failure in JIT Supply Chains

Abstract: Supply chains can be disrupted at both local and global levels. Just-In-Time (JIT) companies should be particularly interested in managing supply chain failure risk as they often have very little inventory to buffer themselves when their upstream supply chain fails. We develop previous research further and present a strategic framework to manage supply chain failure in JIT supply chains. We identify two dimensions along which the risks of failure can be categorized: location and unpredictability. We go on to identify strategies which companies can use either before (proactive) or after (reactive) the failure to manage supply chain failure. We support our framework with examples of actual responses to supply chain failures in JIT companies. It is also hoped that our strategic framework will be validated empirically in the future leading to specific guidance for managers.

Designing a Dynamic Buyer-Supplier Coordination Model in Electronic Markets Using Stochastic Petri Nets

Abstract: Functional relationship between supplier and buyer in an open market place leads to investigate the role of both quantifiable and non-quantifiable parameters in coordination mechanism with the aim of achieving higher performance in supply chain activities. Here, we develop a supply chain model and a new agent to analyze and simulate the players’ behavior in the network. A cooperative game theory framework is utilized between buyer and supplier in order to increase the supply chain performance. The study is supported by presenting SC Net Optimizer as a tool for implementing the proposed coordination mechanism and evaluates the performance of the chain by simulation using stochastic Petri nets (SPNs). The model provides a more realistic optimization process by taking into consideration the dynamic information flow in an uncertainty environment.

The Strategic Implications of E-Network Integration and Transformation Paths for Synchronizing Supply Chains

Abstract: Streamlining information flows across the physical supply chain is crucial for successful supply chain management. This study examines different structures of e-networks (i.e., virtual supply chains linked via electronic information and communication technologies) and their maximum capabilities to gain e-network benefits. Further, this research explores four levels of e-network integration based on a 2x2 e-network technology and transaction integration matrix. Of the four levels, an e-network with high e-technology/high e-transaction integration appears to be most desirable for the companies that aspire to achieve the maximum benefits from their IT investments. Finally, this study identifies three alternative transformation paths toward a powerful high e-technology/high e-transaction integration network and discusses strategic implications of selecting those paths, in terms of e-network structures, availability of financial and technical resources, supply chain members’ collaborative planning, e-security mechanisms, and supply chain size.

Cooperative Pricing Under Forecasting Sharing in the Manufacturer-E-Retailer Supply Chain

Abstract: With the rapid development of the Internet, many retailers and individuals nowadays use this technology to engage in direct e-retailing sales. In this article, we investigate the value of demand-forecast information sharing in a manufacturer-e-retailer supply chain. The value of market information depends not only on its accuracy, but also on the e-retailer’s market power and the product’s Web compatibility. We develop a theoretical approach to examine the value of information sharing for the manufacturer and the e-retailer first, and then we further check to see how information sharing is moderated by the e-retailer’s market share and the product’s e-market-base demand. Our results suggest that under some conditions, both the manufacturer and the e-retailer can be better off from information sharing. Especially when the e-retailer’s market share is larger and the product’s e-market-base demand is higher, information sharing is more valuable for the supply chain players. Using our analysis findings, we indicate marketing strategies that the manufacturer and the e-retailer may want to adopt.

Effectiveness of Distribution Network

Abstract: The distribution professionals verify their operations on a daily basis. The modern logistic leader, use the tips like competitive pressures, mergers, acquisitions, new product lines and greater customer expectations, and so forth. This change is a cost of doing business in the latest “new economy†. This research investigates the auction properties that influence efficiency (ability to maximize price and profit) as the distribution link of the supply chain. Also focuses on different key areas that are the roadmap to an effective, flexible and proactively responsive distribution operation.

Collecting Consumer Behavior Data with WLAN

Abstract: Knowing consumers’ shopping paths is an essential part of successful retailing. Good space management requires accurate data about consumer behavior. Traditionally, these data have been collected through, for example, panel interviews, camera tracking, and in-store observation. Their nature is more or less subjective. Modern technology makes it possible to use more objective methods, such as wireless local area network (WLAN) and radio frequency identification (RFID). In this article we examine the possibilities WLAN provides information systems studies. The empirical data is collected from a large DIY (do-it-yourself) store. The results show that WLAN has great potential for accurate and objective data collection processes and modeling data in retailing.

The Factors Influence Suppliers Satisfaction of Green Supply Chain Management Systems in Taiwan

Abstract: This study investigated user satisfaction when a new interorganizational information system (green supply chain management system; GSCMS) was introduced to a supplier by a leader in the Taiwan electronic industry. GSCMS providers, according to the requirements of the supplier network leader, trained the representatives of suppliers. All suppliers of two sample vendors (manufacturers of electronic products) were surveyed. Five putative influencing factors were considered: perceived usefulness, perceived ease of use, training, computer anxiety, and computer self-efficacy. We find four factors significantly affect user satisfaction. The results show that the training provided by focal vendors will influence the satisfaction of users. Next, the anxiety and uncertainty experienced by users decreases when they acquire more knowledge about the operation of the new GSCMS. Finally, user satisfaction can be increased by designing the functions and interfaces of a GSCMS in accordance with the user perceptions of usefulness and ease of use, moreover, implications and suggestions are also discussed.

Strategic management of international subcontracting : a transaction cost perspective

Abstract: Research on international subcontracting has been policy-oriented and industry-focused. There is a lack of understanding of the phenomenon from strategic management and international business perspectives. This article conceptualizes international subcontracting as a type of relational contract formed by buyers and suppliers from different countries, aiming to facilitate the sourcing of products or components with buyer-specific requirements. It builds a transaction cost model for studying the strategic choice of international subcontracting as an intermediate governance structure, sitting between arm’s length outsourcing arrangement and vertically integrated multinational enterprises (MNEs). A set of propositions are developed to aid future empirical research and to provide managers with some guidelines for organizing supply chain across borders. The model also allows managers to examine the complex nature of a range of subcontracting relationships and identify the specific mechanisms that can be used to preserve and manage the dyadic principal-subcontractor exchanges.

An Exploratory Study to Identify Complementary Resources to the Implementation of Web-Based Applications in a Paint Supply Chain

Abstract: This study focuses on identifying (a) the complementary resources that influence the successful implementation of Web-based applications for supply chain management, and (b) the degree to which certain types of complementary resources function to support the successful implementation of Web-based applications. An exploratory case study is employed to identify potential complementary resources that are required for the successful implementation of Web-based applications that support various portions of the supply chain management task. The utility of a potential complementary resource to each Web-based application for a supply chain task is evaluated to determine the relative value of the resource to the Webbased application. A matrix is then developed to show the degree to which a particular complementary resource is utilized to implement Web-based applications. The contribution of this study is to enhance our understanding of how Web-based applications and complementary resources can work together to create competitive advantages in supply chains.

A Nelder and Mead Methodology for Solving Small Fixed-Charge Transportation Problems

Abstract: The term ‘supply chain management’ has become common in the business world, which can be understood from the positive results of research in the area, particularly in supply chain optimization. Transportation is a frontier in achieving the objectives of the supply chain. Thrust is also given to optimization problems in transportation. The fixed-charge transportation problem is an extension of the transportation problem that includes a fixed cost, along with a variable cost that is proportional to the amount shipped. This article approaches the problem with another meta-heuristics known as the Nelder and Mead methodology to save the computational time with little iteration and obtain better results with the help of a program in C++.

Rough-Cut Cost Estimation in a Capacitated Environment

Abstract: This article presents a deterministic model for rough-cut cost estimation in a capacitated madeto- order environment. We assume that a firm can execute each job either at its own shop or by outsourcing it. The model calculates the unit cost of each product while taking into account the shop floor rough-cut capacity planning, and by determining what to produce in the firm’s shop and what to outsource. In order to reduce run times, a greedy heuristic algorithm was developed. Comparison of the proposed model with a model that takes into account precedence between operations and with a traditional costing approach was conducted. The article gives insight on the affect of shop workload, machine loading, and outsourcing decisions on the product unit cost estimation.

Economic, social, and policy determinants of EU-5 and American apparel imports : a gravity model analysis

Abstract: Both EU and USA are dominant apparel importers in the world. In 2006, the value of world’s apparel exports to them amounted to US$ 212 billion, which represented 80% of the world’s total apperel exports. Specifically, the apparel imports of the top five members of EU; namely, Germany, United Kingdom, France, Italy, and Spain, amounted to US$ 91 billion, accounting for 71% of the regoin’s total apperel imports. Using data from 1990 to 2006, this article investigates the country-specific factors that have impact on the apparel imports of EU-5 as well as USA, and their top five apperel suppliers. Panel data estimation approach is utilized with an exploration at the aggregate level. The results indicate strong support for the model with determinants including GDP, population growth rates, female employment, value added factors, and common membership. All these have positive effects. In contrast, distance, real exchange rates, and wages have negative influence on the expenditure patterns of EU-5 and USA consumers.

The Construction of Green Supply Chain Management System

Abstract: Considering the implications of EU environmental laws such as REACH (registration, evaluation, authorization, and restriction of chemicals) and EuP (directive on eco-design of energy-using products) as well as RoHS (restrictions of the use of certain hazardous substances in electrical and electronic equipment) Directive, they have been acquired to advance GSCM (green supply chain management) more and more. The aim of this article is to introduce the construction of GSCM system that improves collaborative relationships between an EEE manufacturer and its suppliers. The study is conducted in three steps. Firstly, the four elements, which are necessities to form collaborative relationships between an EEE manufacturer and its suppliers, are described. Secondly, the condition and construction of GSCM system including the four elements is proposed. Finally, we presented the method that the GSCM system is constructed as a practicable tool in the initial stage by a case study held in Shimadzu Corporation.

Balancing Accuracy of Promised Ship Data and IT Costs

Abstract: In an ideal e-business environment, when a customer order is scheduled and a ship date is computed, the availability should immediately be reserved and not be available for future orders. However, in reality the availability data that are used for the scheduling the orders are not real time availability (physical availability), but they are availability information stored in an IT system (system availability). The availability data in the IT system (static view of availability) is typically refreshed (synchronized with real time availability) only periodically since it is very expensive to update the database in real time. Due to this potentially inaccurate view of the availability, some orders cannot be shipped on the promised ship date. Therefore, for certain customer orders, products are shipped later than the promised ship date resulting in customer dissatisfaction. Therefore, one of key decisions in order fulfillment process is to properly balance IT system (e.g., IT expense) and accuracy of promised ship date. In this work, we study how availability fresh rate (IT system) impacts customer service level. The simulation model we develop helps making critical business decision on refresh rate of availability, and avoiding expensive IT investment.