bluuebunny/crossref_metadata_2025 huggingface dataset:
SUPPLY CONTRACTS WITH PERIODIC, STATIONARY COMMITMENT
Authors: URBAN TIMOTHY L.
Published: August 2010

The purpose of this paper is to model and analyze supply contracts with periodical commitment, in which the order quantities are fixed and stationary, with limited flexibility to change the order quantity at a cost to the buyer. A solution methodology is provided for the general, stochastic problem, and consideration is given to specific demand distributions. The deterministic model is also investigated, formulating the problem as a mixed‐integer linear program and as a network flow problem. Computational analyses are conducted, and the extension of the basic problem to the multiple‐product, multiple‐constraint problem is discussed.
MANAGING YOUR DOCTORAL PROGRAM: A PRACTICAL ORIENTATION
Authors: SHEPPARD JERRY P. , NAYYAR PRAVEEN R. , SUMMER CHARLES E.
Published: August 2010

In this article we pass on advice for getting through a dissertation that we found useful in our roles as dissertation advisors and doctoral students. We have also included some other hints on starting and getting through a doctoral program, as well as beginning an academic career. We hope that readers in a position to advise Ph.D. students will convey the recommendations stated here to their students. Since the final responsibility for completing the degree rests with the student, the advice given here is, by and large, addressed directly to students and can be passed on to them in its current form.
THE IMPACT OF ELECTRONIC DATA INTERCHANGE ON DELIVERY PERFORMANCE
Authors: AHMAD SOHEL , SCHROEDER ROGER G.
Published: August 2010

After several years of use of electronic data interchange (EDI) in various industries, the literature is still inconclusive regarding the benefits gained from its usage. We investigated contextual factors of two types: non‐managerial (product diversity, product customization, production instability, and organizational size) and managerial (just‐in‐time and quality management), that might have confounded past results. Our results indicate that the extent of EDI use is significantly related to delivery performance after controlling for the above‐mentioned factors. Furthermore, the data set supported the moderating effect of production instability on the relationship between the extent of EDI use and delivery performance achieved, but failed to support the moderating effect of organizational size.
HISTORY OF TECHNOLOGY, MANUFACTURING, AND THE INDUSTRIAL REVOLUTION: AN ALTERNATE PERSPECTIVE ON SCHMENNER'S HYPOTHESES
Authors: SINGHAL KALYAN
Published: August 2010

Two simultaneous developments took place during the so‐called Industrial Revolution (1760–1830): the industrialization of Britain and other countries in Europe and the deindustrialization of a number of non‐European countries, including India. I identify international relations as a major driver of the three components—demand, innovations, and capital formation—of the Industrial Revolution. I also offer an alternate perspective on hypotheses proposed by Schmenner in the preceding article in this issue.
MATERIAL PLANNING FOR A REMANUFACTURING FACILITY
Authors: FERRER GERALDO , WHYBARK D. CLAY
Published: August 2010

This article describes the first fully integrated material planning system to facilitate the management of a remanufacturing facility. A number of firms are already engaged in this activity. They remanufacture automobile, truck, and other vehicle components, like starters, alternators, transmissions, and so forth. These firms take in used components, disassemble them, and assemble saleable products from the good parts they find. There is considerable uncertainty in the supply of used components, the good parts in those components, and the demand for remanufactured products. Our system is based on material requirements planning logic, something that many firms in the industry are already familiar with. Meetings with experts in the industry were used to set the parameters of the system and evaluate its approach.
MANAGING PRODUCT RETURNS FOR REMANUFACTURING
Authors: GUIDE V. DANIEL R. , VANWASSENHOVE LUK N.
Published: August 2010

Firms are often encouraged to offer environmentally friendly products as a demonstration of corporate citizenship. However, this may prove to be an unrealistic expectation since a rational firm will only engage in profitable ventures; those that increase shareholder wealth. We develop a framework for analyzing the profitability of reuse activities and show how the management of product returns influences operational requirements. We show that the acquisition of used products may be used as the control lever for the management and profitability of reuse activities. These activities, termed product acquisition management, affect several important business decisions. First, if a firm is to pursue reuse activities, these reuse activities must be value‐creating. Second, if a firm is to compete by offering remanufactured products, then we show how product returns management influences the overall profitability of such activities via a trial and error EVA approach. Third, we show how operational issues are strongly affected by the approach used to manage product returns. There is a need for future research specifying the mathematical relationship between acquisition price and the nominal quality of the returned product.
THE ROLE OF SUPPLY MANAGEMENT CAPABILITIES IN GREEN SUPPLY
Authors: BOWEN FRANCES E. , COUSINS PAUL D. , LAMMING RICHARD C. , FARUKT ADAM C.
Published: August 2010

Managers realize that they should avoid complex green supply initiatives when they do not have the capabilities to implement them. However, they have little guidance on how these capabilities can be developed. This paper provides an initial analysis of the role of supply management capabilities in green supply. We argue that the implementation of green supply is better explained by focusing on the development and deployment of an organization's specialized internal resources, rather than by the more usual focus on external environmental pressures on a firm. Further, we argue that capabilities appropriate for green supply are developed by a proactive corporate environmental stance and by a more strategic purchasing and supply management approach.

We test our model using data from a two‐phase survey of 70 operating units within UK public limited companies. Our results indicate support for our conjecture that supply management capabilities are jointly developed by a proactive corporate environmental approach and a strategic purchasing and supply process. Our study results should be useful to business strategists, regulators, and researchers interested in the predictors of corporate green behavior. They should also assist future researchers in many branches of environmental management who are seeking to explore the role of the internal capabilities of firms in supporting environmental management.
AN INTEGRATIVE SUMMARY OF DOCTORAL DISSERTATION RESEARCH IN QUALITY MANAGEMENT
Authors: JACK ERIC P. , STEPHENS PAUL R. , EVANS JAMES R.
Published: August 2010

Since 1980, practitioner interest in the field of quality management (qm) has grown significantly, resulting in academic researchers embracing QM as a legitimate discipline of study. One approach to evaluating the intellectual health of a discipline is an examination of doctoral dissertation research. This work both complements and extends other published reviews of the quality management discipline by analyzing doctoral dissertation research since 1981, categorizing this research, examining shifts in major research themes, evaluating data collection and analysis methodologies, and discussing general trends in this research area. Our findings suggest that the challenges in QM have become more interdisciplinary and integrated, and reveal an encouraging trend toward more rigorous research methodologies and the increased use of theories from other disciplines, leading to a more mature body of research in this field.
THE HUMAN SIDE OF MISTAKE‐PROOFING
Authors: STEWART DOUGLAS M. , GROUT JOHN R.
Published: August 2010

Poka‐yoke (mistake‐proofing) is a powerful quality improvement approach, which usually employs relatively simple devices to achieve marked improvements. Inexpensive jigs, fixtures, switches, and gauges act as obvious environmental cues to signal mistake detection. Poka‐yoke has been largely ignored as an avenue for serious academic research. This paper provides scientific underpinning to the largely anecdotal mistake‐proofing literature, by drawing upon research from psychology and cognitive science concerning human error. We delineate areas where additional research would be worthwhile, and guide practitioners in understanding what they are trying to accomplish and how poka‐yoke devices attain this end.
COMPETITIVE PRIORITIES: INVESTIGATING THE NEED FOR TRADE‐OFFS IN OPERATIONS STRATEGY
Authors: BOYER KENNETH K. , LEWIS MARIANNE W.
Published: August 2010

A heated debate continues over the need for trade‐offs in operations strategy. Some researchers call for plants to focus on a single manufacturing capability and devote their limited resources accordingly, while others claim that advanced manufacturing technology (amt) enables concurrent improvements in quality, cost, flexibility, and delivery. Yet there is little empirical evidence for or against the trade‐off model. In response, this study addresses the question: “To what extent do manufacturing plants view competitive priorities as trade‐offs?” We employ survey data collected from managers and operators in 110 plants that have recently implemented AMT. Our findings suggest that trade‐offs remain. However, perceived differences in competitive priorities are subtle and may vary across levels of the plant hierarchy.
CHALLENGES POSED TO OPERATIONS MANAGEMENT BY THE “NEW ECONOMY”
Authors: HAYES ROBERT H.
Published: August 2010

A growing number of sophisticated observers are coming to believe that the forces driving the so‐called New Economy are fundamentally reshaping world industry. Moreover, the combination of fast growth and the excitement associated with leading edge technologies has made New Economy companies magnets for management talent—and particularly for the ambitious young people who attend our management programs. Are we providing these potential managers with a good foundation for managing operations in such companies? Are the principles that we traditionally have taught in operations management (om) courses sufficiently robust that they can still be applied to New Economy operations? In this paper we argue that, although some of our familiar concepts and techniques continue to be applicable to information‐intensive operations, many are not. We sketch out a way to think conceptually about the important differences between the Old and the New Economies, and their implications for operations management teaching and research.
INVENTORY RATIONING AND SHIPMENT FLEXIBILITY ALTERNATIVES FOR DIRECT MARKET FIRMS
Authors: CATTANI KYLE D. , SOUZA GILVAN C.
Published: August 2010

This paper investigates inventory‐rationing policies of interest to firms operating in a direct market channel. We model a single product with two demand classes, where one class requests a lower order fulfillment lead time but pays a higher price. Demand for each class follows a Poisson process. Inventory is fed by a production system with exponentially distributed build times. We study rationing policies in which the firm either blocks or backlogs orders for the lower priority customers when inventory drops below a certain level. We compare the performance of these rationing policies with a pure first‐come, first‐serve policy under various scenarios for customer response to delay: lost sales, backlog, and a combination of lost sales and backlog.
PRICE‐DEPENDENT INVENTORY MODELS WITH DISCOUNT OFFERS AT RANDOM TIMES*
Authors: GOH MARK , SHARAFALI MOOSA
Published: August 2010

We consider an inventory model with a supplier offering discounts to a reseller at random epochs. The offer is accepted when the inventory position is lower than a threshold level. We compare three different pricing policies in which demand is induced by the resellers price variation. Policy 1 is the EOQ policy without discount offers. Policy 2 is a uniform price, stock‐independent policy. Policy 3 is a stock level‐dependent, discriminated price policy. Assuming constant demand rates, expressions are obtained for the optimal order quantities, prices, and profits. The numerical experiments show that if it is better to accept a suppliers discount, then it benefits the reseller to transfer the discount to downstream customers.
PRACTICE‐FOCUSED RESEARCH ISSUES FOR SCHEDULING SYSTEMS*
Authors: MCKAY KENNETH , PINEDO MICHAEL , WEBSTER SCOTT
Published: August 2010

Scheduling research has had relatively little impact on manufacturing practice, yet within the last several years, there has been an explosive growth in the development and implementation of computer‐based scheduling systems in industry. Changes in the environment have increased the stakes and the opportunities for the results of scheduling research to influence manufacturing competitiveness. This paper draws on field‐related experiences with the development and implementation of scheduling systems to propose high‐impact research topics.
JOB RELEASE CONTROL USING A CYCLIC SCHEDULE*
Authors: BOWMAN R. ALAN
Published: August 2010

In just‐in‐time inventory management in any manufacturing setting, the general idea has been to release jobs as late as possible (to reduce inventory costs) while still having them arrive at bottleneck machines in time to maintain the desired throughput (by not starving a bottleneck machine). When a cyclic schedule is employed, the throughput is determined by a cyclic sequence of operations known as the cyclic critical path. These operations are not, in general, all performed on a single bottleneck machine. We present an algorithm for releasing jobs that treats this cyclic critical path as the bottleneck. Although this algorithm has the somewhat complex task of not delaying any of these operations on the cyclic critical path, it is greatly simplified by being able to take advantage of the fixed sequence of the cyclic schedule. The result is that the algorithm is relatively simple to implement. Although it uses a simulation‐based analysis, this analysis can all be done and the necessary results stored in advance of its use. We test the algorithm in a job shop environment with stochastic operation times. This algorithm is shown to be effective at reducing inventory while avoiding decreases in throughput.
IMPACT OF POS DATA SHARING ON SUPPLY CHAIN MANAGEMENT: AN EXPERIMENTAL STUDY
Authors: CROSON RACHEL , DONOHUE KAREN
Published: August 2010

We examine the impact of point of sale (POS) data sharing on ordering decisions in a multi‐echelon supply chain. In particular, we focus on how exposure to POS data may help reduce the “bullwhip effect,” the tendency of orders to increase in variability as one moves up a supply chain. Theoretical studies have shown that exposure to POS data can lead to a reduction in the bullwhip effect when suppliers have no prior knowledge of the demand distribution. The benefit of sharing POS data in stable industries, where the demand distribution is commonly known, is less clear. We study this phenomenon from a behavioral perspective in the context of a simple, serial, supply chain subject to information lags and stochastic demand. We find, using a controlled simulation experiment, that sharing POS information does help reduce some components of the bullwhip effect in a stable demand setting, namely the order oscillation of upstream members. We offer one possible explanation for this improvement by examining the relationship between order decisions and demand line information.
OPTIMAL ORDERING IN A DUAL‐SUPPLIER SYSTEM WITH DEMAND FORECAST UPDATES
Authors: YAN HOUMIN , LIU KE , HSU ARTHUR
Published: August 2010

We study how an updated demand forecast affects a manufacturer's choice in ordering raw materials. With demand forecast updates, we develop a model where raw materials are ordered from two suppliers—one fast but expensive and the other cheap but slow—and further provide an explicit solution to the resulting dynamic optimization problem. Under some mild conditions, we demonstrate that the cost function is convex and twice‐differentiable with respect to order quantity. With this model, we are able to evaluate the benefit of demand information updating which leads to the identification of directions for further improvement. We further demonstrate that the model applies to multiple‐period problems provided that some demand regularity conditions are satisfied. Data collected from a manufacturer support the structure and conclusion of the model. Although the model is described in the context of in‐bound logistics, it can be applied to production and out‐bound logistics decisions as well.
AN IMPROVED HEURISTIC FOR STAFFING TELEPHONE CALL CENTERS WITH LIMITED OPERATING HOURS
Authors: GREEN LINDA V. , KOLESAR PETER J. , SOARES JOÃO
Published: August 2010

Many telephone call centers that experience cyclic and random customer demand adjust their staffing over the day in an attempt to provide a consistent target level of customer service. The standard and widely used staffing method, which we call the stationary independent period by period (SIPP) approach, divides the workday into planning periods and uses a series of stationary independent Erlang‐c queuing models—one for each planning period—to estimate minimum staffing needs. Our research evaluates and improves upon this commonly used heuristic for those telephone call centers with limited hours of operation during the workday. We show that the SIPP approach often suggests staffing that is substantially too low to achieve the targeted customer service levels (probability of customer delay) during critical periods. The major reasons for SIPP‘ s shortfall are as follows: (1) SIPP's failure to account for the time lag between the peak in customer demand and when system congestion actually peaks; and (2) SIPP’ s use of the planning period average arrival rate, thereby assuming that the arrival rate is constant during the period. We identify specific domains for which SIPP tends to suggest inadequate staffing. Based on an analysis of the factors that influence the magnitude of the lag in infinite server systems that start empty and idle, we propose and test two simple “lagged” SIPP modifications that, in most situations, consistently achieve the service target with only modest increases in staffing.
MIXED ASSEMBLY AND DISASSEMBLY OPERATIONS FOR REMANUFACTURING
Authors: KETZENBERG MICHAEL E. , SOUZA GILVAN C. , GUIDE V. DANIEL R.
Published: August 2010

In this paper we consider the problem of designing a mixed assembly‐disassembly line for remanufacturing. That is, parts from the disassembly and repair of used products can be used to build “new” products. This is a problem common to many OEM remanufacturers, such as Xerox or Kodak. We study two main configurations, under the assumption that the disassembly sequence is exactly the reverse of the assembly sequence. Under a parallel configuration, there exist two separate dedicated lines, one for assembly and one for disassembly, which are decoupled by buffers—from both disassembly operations, which have preference, as well as parts from an outside, perfectly reliable supplier. Under a mixed configuration, the same station is used for both disassembly and assembly of a specific part. The problem is studied using GI/G/c networks, as well as simulation. Due to a loss of pooling, we conclude that the parallel configuration outperforms the mixed line only when the variability of both arrivals and processing time are significantly higher for disassembly and remanufacturing than for assembly. Via a simulation, we explore the impact of having advanced yield information for the remanufacturing parts. We find that advanced yield information generally improves flow times; however, there are some instances where it lengthens flow times.
Collaboration and Coordination in Supply Chain Management and E‐Commerce
Authors: Balakrishnan Anantaram , Geunes Joseph
Published: August 2010

Research in Supply Chain Management and Electronic Commerce has grown dramatically in the past decade as firms have intensified efforts to streamline operations and improve service to a diverse and demanding customer base. Central to this theme is the need for firms to look outside of their organizations for opportunities to collaborate and coordinate with partners to ensure that the supply chain is both efficient and responsive to dynamic market needs. Such collaboration and coordination opportunities introduce new challenges and complexities as a result of increased problem scale and scope, and potentially conflicting incentives among different supply chain players. Motivated by these new challenges, this special issue explores a range of coordination and collaboration problems, stressing the role of information and associated technologies in facilitating and enabling supply chain integration.
Contracting in a Supply Chain with Stochastic Demand and Substitute Products
Authors: Kraiselburd Santiago , Narayanan V. G. , Raman Ananth
Published: August 2010

Retailers often stock competing products from multiple manufacturers. When the retailer stocks out of a particular item, customers who prefer the item are likely, with some probability, to switch to a substitute product from another manufacturer at the same store. In such an event, a “lost sale” for the manufacturer is not a “lost sale” for the retailer. This exacerbates differences in manufacturer's and retailer's stockout costs for the item. Such differences in stockout cost influence the optimal contract between the manufacturer and the retailer and also impose agency costs on the channel. Such contracts, in turn, determine equilibrium inventory levels and fill rates. We study these issues in a single‐period supply chain, consisting of a manufacturer and a retailer, under three different scenarios (when the two firms are integrated into a single entity, when the retailer makes stocking decisions, and when the manufacturer makes stocking decisions). We compare, and present a methodology for comparing, stocking quantities, manufacturer efforts, and supply chain profits across different scenarios. We find that VMI performs better when manufacturer effort is a substantial driver of consumer demand and when consumers are unlikely to substitute to another brand in case of a stockout. On the other hand, if non‐contractible manufacturer effort is unimportant, or when substitution is significant, VMI can exacerbate, rather than mitigate, channel inefficiencies, and can perform worse than traditional Retailer Managed Inventory.
An Analytical Investigation of the Bullwhip Effect
Authors: Warburton Roger D. H.
Published: August 2010

The Bullwhip Effect is problematic: order variability increases as orders propagate along the supply chain. The fundamental differential delay equations for a retailer's inventory reacting to a surge in demand are solved exactly. Much of the rich and complex inventory behavior is determined by the replenishment delay. The analytical solutions agree with numerical integrations and previous control theory results. Managerially useful ordering strategies are proposed. Exact expressions are derived for the retailer's orders to the manufacturer, and the Bullwhip Effect arises naturally. The approach is quite general and applicable to a wide variety of supply chain problems.
Managing Quality in the E‐Service System: Development and Application of a Process Model
Authors: Field Joy M. , Heim Gregory R. , Sinha Kingshuk K.
Published: August 2010

In this paper, we develop a process model for assessing and managing e‐service quality based on the underlying components of the e‐service system and, in turn, address the growing need to look in more detail at the system component level for sources of poor quality. The proposed process model is comprised of a set of entities representing the e‐service system, a network defining the linking between all pairs of entities via transactions and product flows, and a set of outcomes of the processes in terms of quality dimensions. The process model is developed using Unified Modeling Language (UML), a pictorial language for specifying service designs that has achieved widespread acceptance among e‐service designers. Examples of applications of the process model are presented to illustrate how the model can be use to identify operational levers for managing and improving e‐service quality.
The Bullwhip Effect—Impact of Stochastic Lead Time, Information Quality, and Information Sharing: A Simulation Study
Authors: Chatfield Dean C. , Kim Jeon G. , Harrison Terry P. , Hayya Jack C.
Published: August 2010

We use a simulation model called ‘SISCO’ to examine the effects in supply chains of stochastic lead times and of information sharing and quality of that information in a periodic order‐up‐to level inventory system. We test the accuracy of the simulation by verifying the results in Chen et al. (2000a) and Dejonckheere et al. (2004). We find that lead‐time variability exacerbates variance amplification in a supply chain, and that information sharing and information quality are highly significant. For example, using the assumptions in Chen et al. (2000a) and Dejonckheere et al. (2004), we find in a numerical experiment of a customer‐retailer‐wholesaler‐distributor‐factory supply chain that variance amplification is attenuated by nearly 50 percent at the factory due to information sharing. Other assumptions we make are based on interviews or conversations with managers at large supply chains.
A Learning Real Options Framework with Application to Process Design and Capacity Planning
Authors: Miller Luke T. , Park Chan S.
Published: August 2010

This paper studies the impact of learning on a multi‐staged investment scenario. In contrast to other models in the real options literature in which learning is viewed as a passive consequence of the delay period, this paper quantifies information acquisition by merging statistical decision theory with the real options framework. In this context, real option attributes are discussed from a Bayesian perspective, thresholds are identified for improved decision‐making, and information's impact on downstream decision‐making is discussed. Using real data provided by a firm in the aerospace maintenance, repair, and overhaul industry, the methodology is used to guide a multi‐phased irreversible investment decision involving process design and capacity planning.
Channel Coordination with a Risk‐Neutral Supplier and a Downside‐Risk‐Averse Retailer
Authors: Gan Xianghua , Sethi Suresh P. , Yan Houmin
Published: August 2010

We investigate how a supply chain involving a risk‐neutral supplier and a downside‐risk‐averse retailer can be coordinated with a supply contract. We show that the standard buy‐back or revenue‐sharing contracts may not coordinate such a channel. Using a definition of coordination of supply chains proposed earlier by the authors, we design a risk‐sharing contract that offers the desired downside protection to the retailer, provides respective reservation profits to the agents, and accomplishes channel coordination.
Optimal Workforce Mix in Service Systems with Two Types of Customers
Authors: Chakravarthy Srinivas R. , Agnihothri Saligrama R.
Published: August 2010

We consider a service system with two types of customers. In such an environment, the servers can either be specialists (or dedicated) who serve a specific customer type, or generalists (or flexible) who serve either type of customers. Cross‐trained workers are more flexible and help reduce system delay, but also contribute to increased service costs and reduced service efficiency. Our objective is to provide insights into the choice of an optimal workforce mix of flexible and dedicated servers. We assume Poisson arrivals and exponential service times, and use matrix‐analytic methods to investigate the impact of various system parameters such as the number of servers, server utilization, and server efficiency on the choice of server mix. We develop guidelines for managers that would help them to decide whether they should be either at one of the extremes, i.e., total flexibility or total specialization, or some combination. If it is the latter, we offer an analytical tool to optimize the server mix.
Changes in Product Attributes and Costs as Drivers of New Product Diffusion and Substitution
Authors: Schmidt Glen M. , Druehl Cheryl T.
Published: August 2010

Diffusion theory has typically focused on how communication, internal or external to a social system, leads to adoptions and diffusion of an innovation. We develop a diffusion and substitution model based on a somewhat different perspective. In some cases, progressive improvements in product attributes and/or continual cost reduction seem to be a key driver of the diffusion process. For example, after introduction of the 5.25‐inch disk drive, its capacity continually increased, and accordingly, so did customer willingness‐to‐pay. Our model is based on a linear reservation price framework, in which a product is described by its depth (defined as the difference between a product̂s maximum reservation price and its production cost), and its breadth (related to the slope of its reservation price curve), indicating how broadly it appeals across various customer segments. Because of changes in product depths and breadths over time, customers who previously preferred the old product may later prefer the new product, thus creating the diffusion process. While the Bass model describes diffusion as a function of the coefficients of innovation and imitation, in our model, it is described by the coefficients of depth and breadth (the rates of change in relative depth and breadth), along with an S‐coefficient that we associate with the technology S‐curve. We fit our model to data from the disk‐drive and the microprocessor industries.
Demand and Production Management with Uniform Guaranteed Lead Time
Authors: Rao Uday S. , Swaminathan Jayashankar M. , Zhang Jun
Published: August 2010

Recently, innovation‐oriented firms have been competing along dimensions other than price, lead time being one such dimension. Increasingly, customers are favoring lead time guarantees as a means to hedge supply chain risks. For a make‐to‐order environment, we explicitly model the impact of a lead time guarantee on customer demands and production planning. We study how a firm can integrate demand and production decisions to optimize expected profits by quoting a uniform guaranteed maximum lead time to all customers. Our analysis highlights the increasing importance of lead time for customers, as well as the tradeoffs in achieving a proper balance between revenue and cost drivers associated with lead‐time guarantees. We show that the optimal lead time has a closed‐form solution with a newsvendor‐like structure. We prove comparative statics results for the change in optimal lead time with changes in capacity and cost parameters and illustrate the insights using numerical experimentation.
Evolution of Quality: First Fifty Issues of Production and Operations Management
Authors: Schroeder Roger G. , Linderman Kevin , Zhang Dongli
Published: August 2010

Many contributions have been made to the field of quality since the inaugural issue of Production and Operations Management in 1992. The first issue called for more research and teaching on TQM, which resulted in two special issues dedicated to TQM. Many other articles related to quality have also been published in the first fifty issues of the journal on topics ranging from technical methods to the Baldrige Award and ISO 9000. As we review these articles, we assess their contribution and the progression of the field of quality. Although past research has advanced our understanding of quality, there still exists many research opportunities in developing more theory, using additional research methodologies, and studying emerging topics in this field.
POM Forum: Transfer of Changing Production Know‐How
Authors: Ferdows Kasra
Published: August 2010

Even with the rich literature on knowledge management, we still don't know enough about how the rate of change in production‐know‐how affects the choice of mechanisms for its transfer. Codifying tacit know‐how helps, but codification becomes more challenging as the know‐how changes more frequently. Transfer of tacit know‐how becomes much more complicated when it changes often. We need more research in this area, particularly to help production and operations managers who must ultimately use the new know‐how and change their companies' production processes.

The paper suggests a framework as a step in that direction. The framework focuses on the interplay between the level of codification and the rate of change of production know‐how, and identifies four zones for classifying production know‐how: “slow and codified,” “slow and tacit,” “fast and codified,” and “fast and tacit.” Examples from McDonald̂s, Club Med, Intel, and AOL are used to illustrate primary transfer mechanisms for each zone (manuals and systems, people, joint‐development, and projects, respectively). Appropriate absorptive capacities in the production units for each zone are also identified. Since the ultimate responsibility of operations managers is to improve (i.e., change) their production know‐how as fast as possible, they would be wise to adopt policies that are closer to those suited for the “fast and codified” zone. Intel and Toyota show good models.
Lot Sizing for Optimal Collection and Use of Remanufacturable Returns over a Finite Life‐Cycle
Authors: Atasu Atalay , Çetinkaya Sila
Published: August 2010

Reverse supply chains process used product returns to recover value by re‐processing them via remanufacturing operations. When remanufacturing is feasible, the longer the return flows are delayed during the active (primary) market demand period of the product, the lower the value that can be recovered through these operations. In fact, in order to recover the highest value from remanufactured products, the collection rates, return timings, and reusability rates should be matched with the active market demand and supply. With these motivations, this paper is aimed at developing analytical models for the efficient use of returns in making production, inventory, and remanufacturing decisions during the active market. More specifically, we consider a stylistic setting where a collector collects used product returns and ships them to the manufacturer who, in turn, recovers value by remanufacturing and supplies products during the active market demand. Naturally, the manufacturer's production, inventory and remanufacturing decisions and costs are influenced by the timing and quantity of the collector's shipments of used product returns. Hence, we investigate the impact of the timing of returns on the profitability of the manufacturer‐collector pair by developing system‐wide cost optimization models. Analyzing the properties of the optimal shipment frequency, we observe that the fastest reverse supply chain may not always be the most efficient one.
Economic Lot Scheduling Problem with Returns
Authors: Tang Ou , Teunter Ruud
Published: August 2010

Motivated by a case study of a company that produces car parts, we study the multi‐product economic lot scheduling problem for a hybrid production line with manufacturing of new products and remanufacturing of returned products. For this economic lot scheduling problem with returns (ELSPR), we consider policies with a common cycle time for all products, and with one manufacturing lot and one remanufacturing lot for each product during a cycle. For a given cycle time, the problem is formulated as a mixed integer linear programming (MIP) problem, which provides the basis for an exact solution. The application of this model for one of the core products of the case study company indicates a 16% reduction in cost compared to the current lot scheduling policy.
Joint Life‐Cycle Dynamics of New and Remanufactured Products
Authors: Debo Laurens G. , Toktay L. Beril , Wassenhove Luk N. Van
Published: August 2010

Many products considered for remanufacturing are durables that exhibit a well‐pronounced product life cycle—they diffuse gradually through the market. The remanufactured product, which is a cheaper substitute for the new product, is often put on the market during the life cycle of the new product and affects its sales dynamics. In this paper, we study the integrated dynamic management of a portfolio of new and remanufactured products that progressively penetrate a potential market over the product life cycle. To this end, we extend the Bass diffusion model in a way that maintains the two essential features of remanufacturing settings: (a) substitution between new and remanufactured products, and (b) a constraint on the diffusion of remanufactured products due to the limited supply of used products that can be remanufactured. We identify characteristics of the diffusion paths of new and remanufactured products. Finally, we analyze the impact of levers such as remanufacturability level, capacity profile and reverse channel speed on profitability.
Inventory Models with Continuous and Poisson Demands and Discounted and Average Costs
Authors: Presman Ernst , Sethi Suresh P.
Published: August 2010

We develop a new, unified approach to treating continuous‐time stochastic inventory problems with both the average and discounted cost criteria. The approach involves the development of an adjusted discounted cycle cost formula, which has an appealing intuitive interpretation. We show for the first time that an ( s, S) policy is optimal in the case of demand having a compound Poisson component as well as a constant rate component. Our demand structure simultaneously generalizes the classical EOQ model and the inventory models with Poisson demand, and we indicate the reasons why this task has been a difficult one. We do not require the surplus cost function to be convex or quasi‐convex as has been assumed in the literature. Finally, we show that the optimal s is unique, but we do not know if optimal S is unique.
Closed‐Loop Supply Chains: An Introduction to the Feature Issue (Part 1)
Authors: Guide V. Daniel R. , VanWassenhove Luk N.
Published: August 2010

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.
Optimal Acquisition and Sorting Policies for Remanufacturing
Authors: Galbreth Michael R. , Blackburn Joseph D.
Published: August 2010

The condition of the used items acquired by remanufacturers is often highly variable, and sorting is an important aspect of remanufacturing operations. Sorting policies—the rules specifying which used products should be remanufactured and which should be scrapped—have received limited attention in the literature. In this paper, we examine the case of a remanufacturer who acquires unsorted used products as needed from third party brokers. As more used items are acquired for a given demand, the remanufacturer can be more selective when sorting. Thus, two related decisions are made: how many used items to acquire, and how selective to be during the sorting process. We derive optimal acquisition and sorting policies in the presence of used product condition variability for a remanufacturer facing both deterministic and uncertain demand. We show the existence of a single optimal acquisition and sorting policy with a simple structure and show that this policy is independent of production amount when acquisition costs are linear.
Supply Chain Management Research and Production and Operations Management: Review, Trends, and Opportunities
Authors: Kouvelis Panos , Chambers Chester , Wang Haiyan
Published: August 2010

We reviewed the manuscripts focused on Supply Chain Management that had been published in Production and Operations Management ( POM) over roughly 15 years (1992 to 2006). The manuscripts covered dealt with topics including supply chain design, uncertainty and the bullwhip effect, contracts and supply chain coordination, capacity and sourcing decisions, applications and practice, and teaching supply chain management. In the process of this review, we highlight the significant contribution of POM to the field of supply chain management, and illustrate how this body of work has served to further the mission of the journal. We then highlight works from this group along with the discussion of selected papers from other top journals in an effort to provide a reasonably complete overview of important issues addressed in recent supply chain management research. Using our research survey and conceptual overview of the area as a foundation, we offer comments which highlight opportunities and suggest ideas on how to usefully expand the body of work in the supply chain management area.
Joint Ordering and Pricing Strategies for Managing Substitutable Products
Authors: Tang Christopher S. , Yin Rui
Published: August 2010

Starr and Rubinson (1978) develop a model to establish the relationship between product demand and relative prices. The notion of relative prices motivates us to consider a situation in which a retailer would either charge the same retail price for all products if he adopts a ‘fixed’ pricing strategy or charge different prices for different products if he adopts a ‘variable’ pricing strategy. In this paper, we develop a base model with deterministic demand that is intended to examine how a retailer should jointly determine the order quantity and the retail price of two substitutable products under the fixed and variable pricing strategies. Our analysis indicates that the optimal retail price under the variable pricing strategy is equal to the optimal retail price under the fixed pricing strategy plus or minus an adjustment term. This adjustment term depends on product substitutability and price sensitivity. We also present two different extensions of our base model. In the first extension, our analysis indicates that the underlying structure of the optimal retail price and order quantity is preserved when there is a limit on the total order quantity. The second extension deals with the issue of retail competition. Relative to the base case, we show that the underlying structure of the optimal retail price and order quantity is preserved in a duopolistic environment. Moreover, our analysis suggests that both retailers would adopt the variable pricing strategy at the equilibrium.
A Resource‐Process Framework of New Service Development
Authors: Froehle Craig M. , Roth Aleda V.
Published: August 2010

Motivated by the increasing attention given to the operational importance of developing new services, this paper offers a theoretical framework that integrates both process‐ and resource‐oriented perspectives of new service development (NSD) by defining and organizing 45 practice constructs for NSD‐related practices and activities that occur in contemporary service firms. We employ a rigorous procedure whereby both quantitative and qualitative data were gathered through multiple rounds of interviews and card‐sorting exercises with senior service managers. This iterative refinement process helps ensure that the construct domains and definitions are consistent and that they are applicable across multiple service sectors. A primary contribution of this research is to provide precise operational definitions of theoretically important NSD practice constructs. Importantly, this study expands on the NSD literature by including both resource‐ and process‐centric perspectives within a single framework. A second contribution is to illustrate a general methodology for developing clear, concise, and consistent construct definitions that may be generally useful for production and operations management scholars interested in new construct development for emerging areas. Empirical results suggest that the resource‐process framework can help guide and organize future research on, and provide insight into, a more comprehensive view of new service development.
Realizing Benefits from Enterprise Resource Planning: Does Strategic Focus Matter?
Authors: Stratman Jeff K.
Published: August 2010

A key driver of the recent wave of enterprise resource planning (ERP) implementations was the assumption that the integration of business information would provide firms with a competitive advantage, yet concrete business benefits have been uneven across adopting firms. A possible explanation is that although the resource‐based view holds that competitive advantage is derived from inimitable resources, ERP software has become a commodity. Socio‐technical theory suggests that internal organizational resources based on a foundation of ERP technology may be the true drivers of ERP benefits. A firm's strategic configuration is posited to influence the portfolio of organizational competencies available to leverage the benefits of integrated business information, and a number of hypotheses are developed based on the notion that firms with different strategic objectives will realize different operational benefits from the adoption of ERP systems. Survey data from North American manufacturing firms that have implemented ERP systems demonstrate that ERP adopters seeking operational performance improvements are likely to realize these benefits. On the other hand, those seeking external market and supply chain performance improvements must first establish a foundation of internal operational performance improvements before customer satisfaction and supply chain benefits can be realized.
How Should a Firm Manage Deteriorating Inventory?
Authors: Ferguson Mark E. , Koenigsberg Oded
Published: August 2010

Firms selling goods whose quality level deteriorates over time often face difficult decisions when unsold inventory remains. Since the leftover product is often perceived to be of lower quality than the new product, carrying it over offers the firm a second selling opportunity, a product line extension to new and unsold units, and the ability to price discriminate. By doing so, however, the firm subjects sales of its new product to competition from the leftover product. We present a two period model that captures the effect of this competition on the firm's production and pricing decisions. We characterize the firm's optimal strategy and find conditions under which the firm is better off carrying all, some, or none of its leftover inventory. We also show that, compared to a firm that acts myopically in the first period, a firm that takes into account the effect of first period decisions on second period profits will price its new product higher and stock more of it in the first period. Thus, the benefit of having a second selling opportunity dominates the detrimental effect of cannibalizing sales of the second period new product.