Production planning and inventory control in a company manufacturing PC parts: A case study

In this paper, we present a case study on the production planning and inventory system in a company manufacturing personal computer (PC) parts. In the case study, the targets are specified for developing a system for production planning and inventory control. The current state of the company is analysed for clarifying the points necessary to achieve the targets. Also, a system based on the analysis is proposed and its effects are estimated.     

The Taiwan system of innovation in the tool machine industry: a case study

Recent evidence suggests that the Taiwan’s machine tool industry as a whole is prominent in the world, ranking sixth in output and fifth in exports. This paper explores the current status and features of Taiwan’s national systems of innovation (NSI) for its machine tool industry. It is suggested that five major elements of the NSI explain the extensive diffusion of new technologies in the industry, namely: industry clusters, educational system, bridging institutions, government policy, and global business environment. Further, the structural and institutional problems of the innovation system are identified. Future directions of technology development are also discussed.     

The impact of JIT on capacity management: A case study and analysis

This article describes the production planning and control techniques used at Verbatim Computer Disk Company in Charlotte, NC. The factory operates by management policy on a 24 hours-per-day, 7 days-per-week, 363 days-peryear, basis as if it were a process industry. Production of discrete units, computer disks, follows repetitive manufacturing methods including the implementation of just-in-time JIT methods into an existing material requirements planning MRP system. Production is based on the actual customer orders received from Marketing for disks from both US customers and international markets. Marketing uses price adjustments in coordination with Production Planning to ensure the factories operate at 100 capacity and within predefined inventory levels. This article discusses the relationship between Marketing and Manufacturing which allows for the attainment of a process industry-like economies of scale for a line of discrete products. Key characteristics of the production planning and control system are identified as are the current operating problems.     

Implementing an improved inventory control system in a small company: a case study

The paper presents the implementation of an improved inventory management control system in a small company. The project took place at Trojan Mine, a company involved in mining mineral resources. Firstly, a conceptual framework for the design of an inventory control management system is developed. Secondly, a very effective user-friendly inventory control tool for determining the category A items was developed using EXCEL spreadsheet; a tool that is an asset to the company since it can be used in future. Finally, key performance indicators were also established to give benchmark to operations. The improved inventory control management system developed is found to offer improvement to the performance of the company since capital tied up in overstocking items of high annual usage value is released.     

Determination of recovery effort for a probabilistic recovery system under various inventory control policies

In this study we investigate the desired level of recovery under various inventory control policies when the success of recovery is probabilistic. All the used and returned items go into a recovery process that is modelled as a single stage operation. The recovery effort is represented by the expected time spent for it. The effect of increasing recovery effort on the success probability together with unit cost of the operation is included by assuming general forms of dependencies. Alternative to recovered items, demand is satisfied by brand-new items. Four inventory control policies that differ in timing of and information used in purchasing decision are proposed. The objective is to find the recovery level together with inventory control parameter that minimize the long-run average total cost. A numerical study covering a wide range of system parameters is carried out. Finally computational results are presented with their managerial implications.     

Linking hybrid systems to ACD models: a case study in the fibre-glass industry

This paper is aimed at formalising and testing a model for hybrid systems where the interactions between the continuous process parts and the manufacturing sub-systems are given by minor stoppages. The proposed approach consists in representing the effects of the continuous process dynamics on discrete manufacturing sub-systems by means of autoregressive conditional duration (ACD) models originally conceived to treat high-frequency and irregularly spaced financial transaction data. The model has been applied to a real-life furnace and spooling-bushing department system of a fibre-glass production plant. Results conclude that the ACD-based model proved useful for representing the occurrence of fibre-glass breakage on the spooling-bushing machines and, in more general terms, that the proposed methodology could be really suitable for the logical modelling of the hybrid production systems where the relationships between the continuous and the discrete parts are given by the occurrence of minor stoppages.     

Impact of Bias Magnification on Supply Chain Costs: The Mitigating Role of Forecast Sharing

The impact of forecast error magnification on supply chain cost has been well documented. Unlike past studies that measure forecast error in terms of forecast standard deviation, our study extends research to consider the impact of forecast bias, and the complex interaction between these variables. Simulating a two‐stage supply chain using realistic cost data we test the impact of bias magnification comparing two scenarios: one with forecast sharing between retailer and supplier, and one without. We then corroborate findings via survey data. Results show magnification of forecast bias to have a considerably greater impact on supply chain cost than magnification of forecast standard deviation. Particularly damaging is high bias in the presence of high forecast standard deviation. Forecast sharing is found to mitigate the impact of forecast error, however, primarily at higher levels of forecast standard deviation. At low levels of forecast standard deviation the benefits are not significant suggesting that engaging in such mitigation strategies may be less effective when there is little opportunity for improvement in accuracy. Furthermore, forecast sharing is found to be much less effective against high levels of bias. This is an important finding as managers often deliberately bias their forecasts and underscores the importance of exercising caution even with forecast sharing, particularly for forecasts that have inherently large errors. The findings provide a deeper understanding of the impact of forecast errors, suggest limitations of forecast sharing, and offer implications for research and practice alike.     

Capturing the benefits of industry 4.0: a business network perspective

Abstract

This study uses a business network perspective to investigate the industry 4.0 context with the internet of things (IoT) as its enabling technology and product-use data as its core network resource. A three-stage qualitative methodology (interviews, focus group, Delphi-based inquiry) was used to examine the case of an emergent IoT-based business network in the UK road transport industry to examine: (i) how aspects of product use data influence the benefit opportunities the data provide to the different network actors; (ii) how capturing of the benefit opportunities in a network context is impacted by key barriers; and (iii) how network capabilities can overcome these barriers to capture benefits from product-use data. The study, thereby, contributes to an understanding of the industry 4.0 context from a resource dependency theory perspective and provides concrete recommendations for management operating in this context.     

Incentive issues in performance-based outsourcing contracts in the UK defence industry: a simulation study

Traditional outsourcing literature has claimed gains for the customer in terms of quality and costs. However, such gains are illusory in outsourcing of high-risk, complex tasks. The use of contracts and governance mechanisms for handling complex procurements is essential in obtaining rewards from outsourcing. Powerful incentives and risks are normally used in industrial service contracts to transfer risks to measure compliance with performance measures. The availability contracts for complex engineering services provision are forms of outsourcing contracts that transfer resources from government to external service providers on a substantial scale. The change moves the contractor role from creating resources to managing resources. Such role change mandates collaboration with customers and suppliers in supply/value chains. The management task is then perceived in terms of linking and optimising alignments rather than increasing service levels. Incentive design is one mechanism for linking the coordination of resources required in availability contracting to the business model. This article studies the impacts of agreed contract type and incentive mechanism on the customer and service provider profits using agent-based discrete event simulation model under multiple risk sharing scenarios.     

Inventory control for the supply chain: An adaptive control approach based on the identification of the lead-time

In this paper, an Internal Model Control (IMC) scheme is incorporated in production inventory control systems in a complete supply chain. This control scheme presents a good target inventory tracking under the perfect knowledge of the system. Furthermore, the inventory tracking and load disturbance rejection control problems can be tackled separately. However, the closed-loop performance of the IMC scheme may be degraded due to a mismatch between the modelled and actual delay or to the fact that delays may be time-varying. Thus, the IMC control scheme is enhanced in this work with a novel method for the online identification of lead times based on a multimodel scheme. In this way, all benefits of the IMC scheme can be exploited. A detailed discussion of the proposed production inventory system is provided including a stability and performance analysis as well as the identification capabilities of the algorithm. Several simulation examples illustrate the efficiency of the approach.     

清洁经营风险强弱传导效应比较研究：基于电子产业数据系统动力仿真

就多数企业实施清洁经营（cleaner operation）能动性不足这一现实,在对南京地区电子企业调研的基础上,运用系统动力仿真技术,对清洁经营风险的策动源、风险的系统传导途径、各经营环节的风险触发水平进行了针对性分析。论文首先对电子产业各经营模块及环节的风险策动水平进行了静态评估,然后应用系统动力仿真方法依据“风险强势传导”和“风险弱势传导”两种路径对由不同风险策动源（清洁经营启动环节）引发的系统风险效应予以动态分析,进而将静态与动态研究结果加以比较,对现实中多数企业规避清洁经营系统风险的动机予以深入剖析,并据此提出了旨在促进企业实施清洁经营的激励性措施。     

Sustaining growth in the modern enterprise: A case study

This paper describes a model developed to demonstrate the constancy of and virtual need for change in a sustaining organization. Several executives from different organizations were interviewed in order to capture the dynamics structure. Essential variables were listed and causal modeling was used to obtain important relationships. Equations of interrelationships among the variables were developed. Validation of the model was performed at two levels: (1) validation of the structure as suggested by the causal modeling process using a new methodology and (2) validation of the emergent behavior by using case studies of industries which have different time rates of evolution.     

科学知识网络的演化与动力——基于科学引证网络的分析

研究科学知识演化的动力及规律是探究科学知识创造及发展过程的关键.基于复杂网络的方法建立了科学知识的演化模型,揭示了知识演化的马太效应中潜隐的时间因素的作用,时间效应一定程度上平抑了度择优所导致的马太效应的负面影响.模型通过引入度择优和时间优先连接以反映了科学知识的继承与更新过程,其中度择优机制保证对经典科学理论的继承,...     

The application of filter theory to the study of supply chain dynamics

Recently, there has been a rebirth of interest in supply chain demand amplification, a trend accelerated by the availability of a wide range of simulation packages. However, although this approach provides some guidance on design improvements possible in a given situation, it rarely offers insight for the future. In the present paper the use of simple filter theory is proposed to help bridge this gap. The example chosen to illustrate the approach is a three-echelon system in which there are factory, distributor, and retailer activities. The results vividly confirm an optimal design previously obtained via a multi-attribute utility technique (MAUT) expert system. However, the knowledge gained via filter theory should improve yet further the effectiveness of the expert system. This is because the sequential steps to be followed when varying the echelon dynamics as part of the search procedure can be greatly improved. The paper concludes by showing how simulation results might be used to confirm the supply chain dynamic design which will minimize stockholdings in the presence of demand fluctuations. However, it should be noted that in common with the successful application of systems dynamics techniques in production-distribution systems generally, the solutions are most applicable to the medium-term operations horizon. The latter term may need re-definition for use in ‘lean’ supply chains. Our intuitive reaction is that a scientific definition may well turn out to be a multiple of the largest remaining process lead-time in the slimmed down supply chain rather than being the customary arbitrary choice of, for instance, a 12-month period.     

The single-period inventory problem: Extension to random yield from the perspective of the supply chain

A special form of the single-period inventory problem (newsvendor problem) with a known demand and stochastic supply (yield) is studied. A general analytic solution for two types of yield risks, additive and multiplicative, is described. Numerical examples demonstrate the solutions for special cases of uniform distribution yield risks. An analysis of a two-tier supply chain of customer and producer reveals that the customer may find it optimal to order more than is needed, since a larger order increases the producer's optimal production quantity.     

New manufacturing technology implementation: a study of the Thai automotive industry

The purpose of this study is to develop the conceptual framework for new manufacturing technology (NMT) implementation. Scales representing management activities within four stages (adoption, pre-implementation, implementation, and post-implementation evaluation) of the framework were developed. Data from the survey of 149 Thai automotive manufacturers were used to test for content validity and reliability of those scales. Then, factor analysis was applied to validate and confirm the construction of the framework of each stage. The result of data analysis indicates four stages of NMT implementation, consisting of (a) determining reasons for NMT adoption, (b) monitoring and justifying whether a certain NMT should be adopted, (c) adapting an existing organisational culture while implementing proper project management approach, and (d) evaluating an effectiveness of NMT implementation. This finding can be adopted by the manufacturers to assist them in the adoption and implementation of NMT in their manufacturing environment.     

Re-engineering high risk, high complexity industries through multiple level technological learning A case study of the world nuclear power industry

Applying lessons learned at the national, the utility, and the plant level, from selected segments of the world-wide nuclear power industry, might facilitate an environmentally acceptable renaissance of the U.S. nuclear power industry through re-engineering it. Elements of this learning from experience process can be found: (a) at the national level in Europe, Japan, and the U.S., (b) at the utility level in two New York State nuclear power utilities, Niagara Mohawk and New York Power Authority, the Tenessee Valley Authority, and Duke Power and Light in the U.S., in Ontario Hydro in Canada, and in the Electricité de France (EdF) in France, and (c) at the plant level in several of these utilities. At the core of all the continuous quality improvement and re-engineering programs, lies this twofold mission: (a) to insulate society from foreseeable and unacceptably high environmental risks, and (b) to continuously improve the design and management of nuclear technology (including nuclear waste management and environmental risk management systems) by learning, learning how to learn, and learning to learn-how-to-learn, both explicitly and tacitly, through feedback from individual and organizational experience.     

E-business services and business performance: a study of the telecommunications manufacturing industry

The development of information and communication technologies has significantly changed the business interactions as well as created new approaches for improving business performances. While the benefits from this development have been well documented in the literature, it also poses a significant challenge for companies in tracking or further improving e-business services. This article contributes to this body of knowledge by investigating the impact of e-business service dimensions on business performance in the telecommunications manufacturing industry. Based on 121 usable responses from a questionnaire survey of the UK telecommunication manufacturers, structural equation modelling is employed to identify the main e-business service dimensions which affect business performance significantly. The data analysis reveals that two e-business service dimensions significantly influence suppliers’ performance from the buyer's perspective. It also indicates the significant relationships between suppliers’ performance, buyer-perceived buyer–supplier relationship maintenance and the buyer's competitive advantage. The findings in this research not only help the supplier to understand which practices significantly improve its overall performance (as perceived by the buyer), but also assist the buyer in its supplier development efforts to improve its own business performance.