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1 – 10 of over 9000Erno Salmela and Janne Huiskonen
The purpose of this paper is to promote decision-making structures between the customer and the supplier in a highly uncertain environment. This phenomenon of demand-supply chain…
Abstract
Purpose
The purpose of this paper is to promote decision-making structures between the customer and the supplier in a highly uncertain environment. This phenomenon of demand-supply chain synchronisation includes sharing of high-quality and timely demand and supply information in order to improve the quality and speed of decision-making.
Design/methodology/approach
The study was carried out as an abductive case study, which started from empirical observations that did not match the prior theoretical framework. Through abductive reasoning and empirical experiments, the prior framework was extended to a new synchronisation model and tools that better accommodate the observed need.
Findings
A new co-innovation toolbox was developed to create common understanding of demand-supply chain synchronisation between the customer and the supplier. The toolbox includes Demand Visibility Point-Demand Penetration Point, Supply Visibility Point–Supply Penetration Point and Integrative Synchronisation tools.
Research limitations/implications
The study extends the current models and tools of demand-supply chain synchronisation. With the new toolbox, the development needs of decision-making structures can be identified more comprehensively than with the current tools.
Practical implications
The developed visual toolbox helps partners create a common understanding of problems and development possibilities in demand-supply chain synchronisation in a highly uncertain environment. Common understanding is a starting point for changing decision-making structures to improve the overall performance of a demand-supply chain.
Originality/value
The new toolbox is both more comprehensive and more detailed than the previous tools.
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Diego Aparecido Wolfshorndl, Mauro Vivaldini and João Batista de Camargo Junior
From the perspective of the supply chain risk management (SCRM), this paper addresses the effects of a hybrid production system (make-to-stock and make-to-order) in order to know…
Abstract
Purpose
From the perspective of the supply chain risk management (SCRM), this paper addresses the effects of a hybrid production system (make-to-stock and make-to-order) in order to know which risks can impact the production planning process at a large automaker in Brazil. Through the correlation of these themes, the purpose of this paper is to understand the relevant risks to the supply chain (SC).
Design/methodology/approach
Before the field research, a theoretical approach was made on two themes. After theoretical analysis of a case study on the automaker and data collection, the work used the Pearson’s product moment correlation (r) and χ2 and Kolmogorov–Smirnov tests to assess the risk factors raised by the interviewed professionals, thus characterizing a mixed methodological approach (i.e. qualitative and quantitative).
Findings
It was evidenced that many risks are the result of functional failures, such as input of incorrect information in the system, and many are inherent to managerial decisions when procedures and different paths of production are adopted. Additionally, it has been proven that the adoption of a hybrid production planning approach does not increase the risks to the SC and that the identified risks do not necessarily are included within the scope of SCRM.
Originality/value
This study is characterized by an approach which combines SCRM and hybrid production system.
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In the aftermath of the COVID-19 pandemic, supply chains have become important policy tools to ensure the security and resilience of regional trading blocs of major economies. The…
Abstract
In the aftermath of the COVID-19 pandemic, supply chains have become important policy tools to ensure the security and resilience of regional trading blocs of major economies. The US government’s focus on supply chains for selected strategic industries and the EU Commission’s renewed efforts to strengthen its supply chains using ‘sustainability standards’ coincides with the global trend in the shift towards digital and low-carbon economies. Furthermore, the rising tensions between the US and China, with no signs of reconciliation over key issues of contention, have emphasized the need for more credibility and trust in global supply chains. However, such policies also have the potential to serve as new barriers to participation in supply chains by less-developed economies which are not yet prepared to meet the high-level sustainability criteria which aim for higher protection of the environment and labor rights. There also seems to be an apparent shift in paradigm supporting the interventionist role of government that emphasize the need for more discretion for policy objectives that pursue societal and democratic values, not to mention national security interests. The current rules of international trade, however, do not sufficiently address these new issues and need to be realigned in order to meet the new demands. The current ‘rules of the game’ need to be reinforced in order to accommodate the rising need of countries for increased consideration of issues of sustainability and competitiveness.
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Jan Sher Akmal, Mika Salmi, Roy Björkstrand, Jouni Partanen and Jan Holmström
Introducing additive manufacturing (AM) in a multinational corporation with a global spare parts operation requires tools for a dynamic supplier selection, considering both cost…
Abstract
Purpose
Introducing additive manufacturing (AM) in a multinational corporation with a global spare parts operation requires tools for a dynamic supplier selection, considering both cost and delivery performance. In the switchover to AM from conventional manufacturing, the objective of this study is to find situations and ways to improve the spare parts service to end customers.
Design/methodology/approach
In this explorative study, the authors develop a procedure – in collaboration with the spare parts operations managers of a case company – for dynamic operational decision-making for the selection of spare parts supply from multiple suppliers. The authors' design proposition is based on a field experiment for the procurement and delivery of 36 problematic spare parts.
Findings
The practice intervention verified the intended outcomes of increased cost and delivery performance, yielding improved customer service through a switchover to AM according to situational context. The successful operational integration of dynamic additive and static conventional supply was triggered by the generative mechanisms of highly interactive model-based supplier relationships and insignificant transaction costs.
Originality/value
The dynamic decision-making proposal extends the product-specific make-to-order practice to the general-purpose build-to-model that selects the mode of supply and supplier for individual spare parts at an operational level through model-based interactions with AM suppliers. The successful outcome of the experiment prompted the case company to begin the introduction of AM into the company's spare parts supply chain.
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Chiara Acciarini, Federica Brunetta and Paolo Boccardelli
In a work environment marked by unprecedented complexity, volatility and ambiguity, managers must accomplish their objectives while navigating many challenges. This paper aims to…
Abstract
Purpose
In a work environment marked by unprecedented complexity, volatility and ambiguity, managers must accomplish their objectives while navigating many challenges. This paper aims to investigate potential interrelations among environmental transformations, cognitive biases and strategic decisions. In particular, the purpose of the study is to crystallize the state of art on the impact of cognitive biases on strategic decisions, in the context of environmental transformations.
Design/methodology/approach
The authors have conducted a systematic literature review to identify existing relevant work on this topic and to detect potential avenues for future research.
Findings
The findings highlight how decision-making is influenced and enabled by internal (e.g. perception) and external factors (e.g. digitalization). Specifically, the strategic role of cognitive biases appears to be crucial when investigating the related impact on strategic decisions in times of environmental transformation.
Practical implications
Implications are drawn for scholars and practitioners interested in evaluating the role of specific decision-making determinants for the formation and implementation of strategic decisions. In this sense, we stress that decision-makers need to manage their cognitive biases and select the right information out of a wide data set in order to adapt to environmental transformations.
Originality/value
By systematizing the literature review, potential interrelations among environmental transformations, cognitive biases and strategic decisions are identified. Furthermore, the primary phases that drive the decision-making process are proposed (analysis, decision, onboarding and control).
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Nienke Hofstra, Wout Dullaert, Sander De Leeuw and Eirini Spiliotopoulou
The purpose of this paper is to develop propositions explaining the influence of individual goals and social preferences on human decision making in transport planning. The aim is…
Abstract
Purpose
The purpose of this paper is to develop propositions explaining the influence of individual goals and social preferences on human decision making in transport planning. The aim is to understand which individual goals and social preferences planners pursue and how these influence planners’ decisions.
Design/methodology/approach
Propositions are developed based on investigation of decision making of transport planners in a Dutch logistics service provider using multiple data collection methods.
Findings
The study shows how decision making of transport planners is motivated by individual goals as well as social preferences for reciprocity and group identity.
Research limitations/implications
Further research including transaction data analysis is needed to triangulate findings and to strengthen conclusions. Propositions are developed to be tested in future research.
Practical implications
Results suggest that efforts to guide planners in their decision making should go beyond traditional (monetary) incentives and consider their individual goals and social preferences. Moreover, this study provides insight into why transport planners deviate from desired behaviour.
Originality/value
While individual decision making plays an essential role in operational planning, the factors influencing how individuals make operational planning decisions are not fully understood.
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Simone Guercini and Susan Maria Freeman
The paper addresses the following research question: how do decision-makers use heuristics in their international business (IB) environment? Whereas, the literature has focused on…
Abstract
Purpose
The paper addresses the following research question: how do decision-makers use heuristics in their international business (IB) environment? Whereas, the literature has focused on entrepreneurial companies, here contrasting approaches to learning and using heuristics in international marketing (IM) decisions are examined and discussed.
Design/methodology/approach
The paper aims to address a gap in the study of micro-foundations of internationalization, exploiting research from other disciplinary fields. It combines a multidisciplinary literature review and longitudinal case studies to illustrate different approaches in learning and using heuristics by international marketers.
Findings
International marketers can adopt “closed” heuristics that are consolidated and consistently followed, or “open” heuristics, which are constantly being adapted and learned. Established multinationals learn heuristics in international marketing decision-making, following both “closed” and “open” models.
Originality/value
This paper offers an original contribution by presenting different approaches not yet examined in the literature, focusing on how international marketers make decisions through learning and using heuristic rules. The focus is on established exporters, in contrast to the literature that has largely paid attention to the effectiveness of heuristics in new entrepreneurial firms.
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Yue Zhou, Xiaobei Shen and Yugang Yu
This study examines the relationship between demand forecasting error and retail inventory management in an uncertain supplier yield context. Replenishment is segmented into…
Abstract
Purpose
This study examines the relationship between demand forecasting error and retail inventory management in an uncertain supplier yield context. Replenishment is segmented into off-season and peak-season, with the former characterized by longer lead times and higher supply uncertainty. In contrast, the latter incurs higher acquisition costs but ensures certain supply, with the retailer's purchase volume aligning with the acquired volume. Retailers can replenish in both phases, receiving goods before the sales season. This paper focuses on the impact of the retailer's demand forecasting bias on their sales period profits for both phases.
Design/methodology/approach
This study adopts a data-driven research approach by drawing inspiration from real data provided by a cooperating enterprise to address research problems. Mathematical modeling is employed to solve the problems, and the resulting optimal strategies are tested and validated in real-world scenarios. Furthermore, the applicability of the optimal strategies is enhanced by incorporating numerical simulations under other general distributions.
Findings
The study's findings reveal that a greater disparity between predicted and actual demand distributions can significantly reduce the profits that a retailer-supplier system can earn, with the optimal purchase volume also being affected. Moreover, the paper shows that the mean of the forecasting error has a more substantial impact on system revenue than the variance of the forecasting error. Specifically, the larger the absolute difference between the predicted and actual means, the lower the system revenue. As a result, managers should focus on improving the quality of demand forecasting, especially the accuracy of mean forecasting, when making replenishment decisions.
Practical implications
This study established a two-stage inventory optimization model that simultaneously considers random yield and demand forecast quality, and provides explicit expressions for optimal strategies under two specific demand distributions. Furthermore, the authors focused on how forecast error affects the optimal inventory strategy and obtained interesting properties of the optimal solution. In particular, the property that the optimal procurement quantity no longer changes with increasing forecast error under certain conditions is noteworthy, and has not been previously noted by scholars. Therefore, the study fills a gap in the literature.
Originality/value
This study established a two-stage inventory optimization model that simultaneously considers random yield and demand forecast quality, and provides explicit expressions for optimal strategies under two specific demand distributions. Furthermore, the authors focused on how forecast error affects the optimal inventory strategy and obtained interesting properties of the optimal solution. In particular, the property that the optimal procurement quantity no longer changes with increasing forecast error under certain conditions is noteworthy, and has not been previously noted by scholars. Therefore, the study fills a gap in the literature.
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Fred Mear and Richard A. Werner
This paper contributes to the theory of the relationship between human resource management (HRM) and innovation at small- to medium-sized enterprises (SMEs) by conducting a…
Abstract
Purpose
This paper contributes to the theory of the relationship between human resource management (HRM) and innovation at small- to medium-sized enterprises (SMEs) by conducting a conceptual analysis of the question why Germany boasts by far the highest number of “Hidden Champion” SMEs. This is done by case studies from the army and public financial management of aid disbursal in developing countries. Implications for HRM at SMEs are discussed.
Design/methodology/approach
Conceptual analysis using case studies.
Findings
Contributing towards filling the gap concerning theoretical underpinnings of the link between HRM and innovation, we suggest that interdisciplinary work from relevant organisational case studies indicates that the concept of institutional design to provide motivational incentives may be relevant, especially concerning high performance systems with bundles of HRM practices. Specifically, the fundamental principle of subsidiarity is found to be important.
Research limitations/implications
The research is broadly applicable to organisations of all kinds, as the diverse case studies indicate. We point towards tentative implications for the firms that account for the majority of the work force, namely SMEs, and among them the most successful ones, the so-called “Hidden Champions”.
Practical implications
HR managers can improve motivation, performance and innovation by decentralising decision-making as far as possible, while ensuring the overall organisational goals are well understood and shared, and resources are dedicated to train and educate staff. Additionally, the conception of rank-order competitions complements the institutional design.
Social implications
Greater productivity and material performance as well as greater job satisfaction via larger autonomy and decision-making power on the local level can be achieved by the application of subsidiarity as key HRM configuration. This can be employed at SMEs, as discussed, but also other organisations. Further, the principle of subsidiarity and the greater emphasis on staff training and education may help reduce inequality.
Originality/value
Our paper contributes towards filling the gap in the literature on the link between HRM and innovation, by identifying the role of subsidiarity. We introduce an interdisciplinary perspective, with contributions from economics and psychology, among others. We also contribute to the history of HRM.
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Helena Forslund and Stig-Arne Mattsson
The purpose of this study is to develop a framework of strategies to achieving customer order flexibility in and related to the order-to-delivery (OTD) process. The purpose is…
Abstract
Purpose
The purpose of this study is to develop a framework of strategies to achieving customer order flexibility in and related to the order-to-delivery (OTD) process. The purpose is also to investigate how companies prioritize various strategies to achieve customer order flexibility.
Design/methodology/approach
Based on a literature review, pre-tests and conceptual reasoning, a conceptual framework of strategies related to the order-to-delivery process was developed. The strategies were linked to the order quantity and delivery lead-time flexibility dimensions. This structure resulted in six groups covering enabling as well as remedial strategies. An empirical interview study of ten customer–supplier relationships was conducted.
Findings
The interviews identified additional strategies, thereby expanding the framework. The enabling strategies with the highest median values were “have continuous contact with the customer's purchaser” and “use safety stock of raw materials/semi-finished products”. The remedial strategy with the highest median was “re-plan/re-prioritize the order backlog”. In the delivery sub-process, it was more common to apply remedial strategies for delivery lead-time than for order quantities.
Research limitations/implications
The developed framework is a contribution to the literature on operational flexibility in and related to the OTD process. It complements existing knowledge by taking a supplier perspective.
Practical implications
Suppliers can use the framework as a tool to understand and systematically achieve better customer order flexibility in and related to the OTD process. Customers can use the framework as a checklist for supplier evaluation and supplier development.
Originality/value
Few identified studies include empirical data on customer order flexibility.
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