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Increased demand variability in supply chains (the bullwhip effect) has been discussed in the literature. The practical measurement of this effect, however, entails some…
Increased demand variability in supply chains (the bullwhip effect) has been discussed in the literature. The practical measurement of this effect, however, entails some problems that have not received much attention in the literature and that have to do with the aggregation of data, incompleteness of data, the isolation of demand data for defined supply chains that are part of a greater supply web. This paper discusses these conceptual measurement problems and discusses experiences in dealing with some of these problems in an industrial project. Also presents empirical results of measurements of the bullwhip effect in two supply chains.
The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product…
The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).
This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.
The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.
This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.
This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.
This study aims to synthesize qualitative research in the accounting and management literature that builds on the concept of enabling formalization. The framework for the…
This study aims to synthesize qualitative research in the accounting and management literature that builds on the concept of enabling formalization. The framework for the meta-synthesis integrates formal management control system (MCS) design applying the package typology and two modes of MCS use, namely, diagnostic and interactive.
The meta-synthesis is based on 34 case studies gathered by a systematic literature search. Qualitative research mining software (Leximancer) was used to facilitate an initial analysis, upon which an in-depth manual analysis was conducted.
The findings indicate that the generic features of enabling formalization – specifically, flexibility and repair – help employees better deal with inevitable contingencies in their daily work through continuous self-improvement. In many circumstances, there is a need to change common organizational practices, which sometimes requires realignment to direct employee behavior toward goal congruence. The (temporary) coercion of employees does not seem to cause dysfunctional behavior or resistance as long as the broader MCS package follows the design features of enabling formalization – specifically, transparency. The interactive use of personnel/cultural controls appears to play a crucial role within the whole MCS package in balancing tensions between coercion and enabling formalization.
This study adds to the understanding of formal MCS design characteristics perceived by managers and employees as enabling. Furthermore, it shows how managers of these organizations use formal MCS under enabling formalization.
To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing…
To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing, life cycle costing, component commonality, and modular design.
The structured literature search covered papers about 15 different cost management methods published in 40 journals in the period 1990–2013.
The search yielded a sample of 113 different papers. Many contained information about more than one method, and this yielded 149 references to specific methods. The number of references varied strongly per cost management method and per journal. Target costing has received by far the most attention in the publications in our sample; modular design, component commonality, and life cycle costing were ranked second and joint third. Most references were published in Management Science; Management Accounting Research; and Accounting, Organizations and Society. The results were strongly influenced by Management Science and Decision Science, because cost management methods with an engineering background were published above average in these two journals (design for manufacturing, component commonality, modular design, and product platforms) while other topics were published below average in these two journals.
The scope of this review is accounting research. Future work could review the research on cost management methods in new product development published outside accounting.
The paper centers on methods for cost management, which complements reviews that focused on theoretical constructs of management accounting information and its use.
This article addresses purchasing decisions and the use of total cost of ownership (TCO) information. TCO is based on a monetary quantification of nonfinancial attributes…
This article addresses purchasing decisions and the use of total cost of ownership (TCO) information. TCO is based on a monetary quantification of nonfinancial attributes and aggregation into a summary measure (such as cost per hour, per wafer, or per kilometer). From an accounting point-of-view, one intricate issue is the accuracy of the monetary quantification and how this affects decision-making. We distinguish three different kinds of inaccurate monetary quantification, and we investigate the weight that decision makers attach to attributes that are inaccurately monetarily quantified and subsequently included in TCO information. Specifically, we investigate whether this weight depends on reflective thinking and experience. This question is relevant beyond TCO, for all decision-making situations that involve monetary quantification of attributes and subsequent aggregation, such as in activity-based costing, net present value calculations for capital budgeting decisions, or cost-benefit analyses in public administration.
We found support for the hypothesis that reflective thinking increases the weight decision makers attach to the attribute that is included as a minimum cost in the TCO-numbers, but not for the hypothesis that reflective thinking would reduce the weight attached to the attribute that is included as a maximum cost in the TCO-numbers. Students and practitioners differed significantly in the weight they attached to an attribute that was excluded from the TCO-numbers, and practitioners gave less weight to such attributes. Together these results suggest that TCO-numbers should be provided with care and possible inaccuracies should be clarified.
Redesigns of supply chains have been largely limited to the differentiation of delivery processes to offer customers different delivery lead‐times on different products…
Redesigns of supply chains have been largely limited to the differentiation of delivery processes to offer customers different delivery lead‐times on different products. In the future, differentiation will go much deeper, back into the supply chains within and across companies. Companies, together with partner companies in a supply chain, will increasingly have to design business processes that meet many different kinds of customer needs. This article describes how differentiated service will be realized through the reconstruction of the traditional sales and fulfillment cycle, whereby the traditional process is broken down and reconstructed in a manner that maximizes the overall efficiency of the chain. The article is based on the results of a year‐long study to develop supply chain improvements within two sectors ‐ electrical installations and pharmaceuticals. Distinctive aspects of this study were that it looked at supply chains that connected three echelons of independent companies in a project environment. The major players in the industries were involved in the project. The article describes three elements for reconstructing the sales and fulfillment cycle: i) reallocating activities to most efficient players; ii) reallocating inventory to reduce duplication; and, iii) using knowledge of end‐user demand to streamline (parts of) the supply chain. The article also examines two barriers to implementation and how to deal with these: the need for openness between supply chain partners; and the fact that current systems cannot handle the degree of differentiation and cooperation required.