1.    S.M. Karalli, and A.D. Flowers

The JRP with Multiple Replenishment Sources and Fill Rates

CJOM, 2011, Vol. 9(2), 2011, 1-19

This paper extends the Joint Replenishment Problem (JRP) to a stochastic demand environment where the demand service is measured by fill rates. This paper also considers replenishment from multiple locations. The relevant costs include family order costs, item order costs, and inventory holding costs for both cycle and safety stocks. Safety stock costs are explicitly considered in the formulation, as their holding costs vary nontrivially with the model’s decision variables. An efficient solution procedure is developed for this model. Properties of the non-convex feasible space are identified and used in the solution approach. The solution to the mathematical model is comprised of the basic period length, the family multipliers, and the item multipliers that give the lowest total cost of placing orders and carrying inventory. The family multipliers and items multipliers are restricted to integer-powers-of-two.

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2.    Randall A. Napier and Edmund Prater

Supply Chain Inventory Replenishment: A Benefit Analysis Model

CJOM, 2011, Vol. 9(2), 2011, 20-41

This paper details an action research project conducted to (a) improve supply chain management processes for a mid-market manufacturer of electronic components while (b) extending research on decision processes in small- and medium-sized enterprises (SME’s).  The manufacturer faced long and unpredictable lead times on critical materials sourced from an affiliated overseas supplier.  The company had responded by keeping excessive safety stock, but lacked a mechanism for quantifying the economic impact of this policy.  We present a multiple-scenario model that calculates the economic impact of reduced inventory levels and carrying costs.  We also present qualitative analysis from the study, yielding research questions involving (1) a cost not to solve approach to change management proposals, (2) decision processes in nested SME’s that are part of a large holding company, and (3) the potential use of cellular supply chain management techniques to optimize processes within a large holding company.

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3. David G. Hollingworth and Sohel Ahmad

An Empirical Examination of Product-Process Matrix Position and EDI Implementation

CJOM, 2011, Vol. 9(2), 2011, 42-58

The literature proposes that the implementation of EDI should be consistent with a manufacturer’s operational strategy, yet very few studies consider the relationship between these two areas.  This study attempts to bridge that gap in the existing research by empirically investigating whether the four facets of EDI are being implemented in manufacturing organizations in a manner that is consistent with their position in the Product-Process Matrix.  Data from manufacturing plants in three industries and four countries are classified into strategic groups according to their position in the Product-Process Matrix.  These groups are statistically analyzed using ANCOVA.  Manufacturers are implementing the facets of EDI that correspond with increased efficiency – in a manner that is consistent with their operational capabilities.  However, we did not find evidence that manufacturers’ operational strategies, as indicated by their position in the Product-Process Matrix, were being followed, when it came to the implementation of EDI Diversity.

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4.    William D. Presutti, Jr.

Organization-Wide Variable Pay: The Missing Link in Managing the Value Chain

CJOM, 2011, Vol. 9(2), 2011, 59-69

Introducing an organization-wide variable compensation system based on overall company performance is one of the key initiatives that should be pursued in the efforts to effectively manage the value chain. Yet, the subject is largely absent in any discussion of value chain-related issues.  The value chain involves interdependencies, cooperation, and group performance.  Compensation systems need to be designed to reinforce those behaviors to more tightly tie the identity of front-line workers to the goals and objectives of the firm.  Organization-wide variable pay for everyone can boost productivity and profitability that generates a return on investment that essentially makes the system self-financing. A vast literature exists on the issue of organization-wide variable pay that provides important lessons.  Changing the structure of compensation in American enterprise can make a meaningful contribution to repairing the productivity-pay bargain for front-line workers that has been breaking for the past 30 years.

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5.    Jighyasu Gaur and Sourabh Bhattacharya

The relationship of Financial and Inventory performance of manufacturing firms in Indian Context

CJOM, 2011, Vol. 9(2), 2011, 70-77

The extant literature on supply chain performance identifies two contradictory views about the relationship between inventory performance and financial performance of supply chains. While there are studies that suggest a positive association between inventory turnover and financial performance, few studies {Tunc & Gupta (1993), Vastag & Whybark (2005)} found that inventory turnover has no relation with financial performance. In addition, most of the studies considered total inventory value as a proxy of inventory performance. Capkun et al. (2009) suggested that inventory performance can be divided into its discrete components such as Raw material inventory (RMI), Work-in-progress inventory (WIPI), and Finished goods inventory (FGI). India is fourth largest economy, by Purchasing power parity, of the world and almost all global firms have started their operations in India. Hence, it is important to study about Indian firms’ performance. It is noteworthy that there is not a single study, with respect to relationship between inventory performance and financial performance of supply chains, has been conducted for Indian firms. This paper is an attempt to study the relationship between the performance of the discrete components of inventory (RMI, WIPI, and FGI), and financial performance of Indian manufacturing firms.

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6.    Liang-Chieh Cheng

Assessing Information Technology Moderating Effects on Outsourcing Strategy and Inventory Levels in the Manufacturing Sector

CJOM, 2011, Vol. 9(2), 2011, 78-97

This paper studies the current growing utilization of contract manufacturing and how IT systems coupled with the outsourcing strategy can impact inventory performance.  Contract manufacturing has been a strategic tool for manufacturing sectors to operate the manufacturing systems. A growing number of original equipment manufacturers have shifted a section of the entire line of production to contract manufacturers located either in the U.S. or around the world.  While contractual arrangements may provide integrative inter-firm governances, it is the supply chain information technology (IT) systems that facilitate information sharing between supply chain members and in turn lead to better operational performance. We performed a cross-industry study on the effects of contract manufacturing-IT interaction on inventory performance.  Our primary findings suggest that contract manufacturing may result in higher inventories in the supply chain; however, the combination of manufacture outsourcing and IT investment can reduce industry-level inventories of finished goods and raw materials.

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7.    Xiaohui Xu

Information Update and Risk Pooling in a Mixed Distribution Channel

CJOM, 2011, Vol. 9(2), 2011, 98-107

Centralized distribution systems can pool risk across many markets as inventory can shift from low demand markets to high demand areas. On the other hand, a decentralized channel design allows store managers to control inventory according to area specific conditions. In this paper, we study a hybrid system that takes advantage of both types of setups. In addition to the considerations of risk pooling and local differences, we also examine situations where a centralized operation in a hybrid configuration can obtain information about general demand from decentralized local stores. This paper studies the optimal hybrid channel structure of a manufacturer facing a short selling season and long production lead time. The results demonstrate the tradeoff between information update and risk pooling. When the benefits of information flow outweigh the benefits from aggregating regional demands, the manufacturer chooses to have a significant local presence. We also study the manufacturer’s decision when only pure strategies are available.

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8.    Steven A. Yourstone, S. H. Kraye, and Gerald Albaum

Issues in Feedback on Student Performance: Timing & Type

CJOM, 2011, Vol. 9(2), 2011, 108-122

The Operations Management literature has not explored the topic of the timing and type of feedback to students.  This important pedagogical topic is explored in the present paper through a literature search covering the years 1926 through 2010, and by an empirical study on the timing of feedback to students in an Operations Management class. The literature search reveals that student learning depends not only on the timing of the feedback, but also the type of feedback, the amount of feedback, the scholastic level of the student, the level of complexity of the learning task, stage of learning, prior knowledge, and whether we are measuring acquisition of knowledge or delayed retention. Using an experimental design, the empirical study looked at comparing student learning (measured by examination scores) using an online grading system with immediate feedback versus delayed paper feedback. Results indicate no significant difference.

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