Mass Customization in the Automotive Industry: Comparing Interdealer Trading and Reconfiguration Flexibilities in Order Fulfillment

Mass customization has been viewed as desirable but difficult to achieve in the volume automotive sector. Here we consider flexibility in automotive order fulfillment systems to enhance the ability to satisfy customers with their desired vehicle variants within acceptable delivery lead times. Two types of flexibility are compared in a Virtual‐Build‐to‐Order system—reconfiguration in the planning pipeline and interdealer trading. A representative simulation model is used to investigate the impact of the two types of flexibility across a wide spectrum of product variety levels. The impacts on major stakeholders in the system—the producer, dealers, and customers—are considered. The study shows that both types of flexibilities can bring significant benefits in terms of reductions in lead time and inventory holding. The level of product variety strongly influences the observed effects—an important finding in the mass customization context. Upstream reconfiguration flexibility brings greater benefits than downstream trading flexibility. Reconfiguration tends to dominate trading as a fulfillment mechanism when both are in operation. The findings have implications for the design and management of automotive order fulfillment systems in improving their ability to offer mass customization. The study has relevance for companies in other sectors with high levels of variety that seek to combine efficiency, speed, and flexibility in order fulfillment.     

The managerial power approach: Is it testable?

Journal of Management and Governance - The central hypothesis of the managerial power approach (MPA) states that power is the main driver of executive compensation. The positive impact of power on...     

Evaluating Application Service Provisioning Using System Dynamics Methodology

Despite the hype surrounding the value‐added potential of e‐business for contemporary firms, the recent technology downturn was marked by poor customer satisfaction from investment in e‐business initiatives. An apparent mismatch between customer expectations and vendor offerings suggested a lack of appropriate methods and techniques for evaluating e‐business. This article draws from a longitudinal research study on the deployment, hosting and integration of application service provisioning (ASP), an e‐business model targeted mainly at small and medium‐sized businesses (SMBs). Using system dynamics as a methodology that addresses the inherent complexity of the ASP model, the article demonstrates how a series of complex inter‐relationships between key performance indicators (KPIs) will impact the business value for customers from ASP vendor products and services. The lessons from this research will be particularly relevant for existing and future ASP vendors and customers.     

Identification of Standard Auction Models

This paper presents new identification results for models of first–price, second–price, ascending (English), and descending (Dutch) auctions. We consider a general specification of the latent demand and information structure, nesting both private values and common values models, and allowing correlated types as well as ex ante asymmetry. We address identification of a series of nested models and derive testable restrictions enabling discrimination between models on the basis of observed data. The simplest model—symmetric independent private values—is nonparametrically identified even if only the transaction price from each auction is observed. For richer models, identification and testable restrictions may be obtained when additional information of one or more of the following types is available: (i) the identity of the winning bidder or other bidders; (ii) one or more bids in addition to the transaction price; (iii) exogenous variation in the number of bidders; (iv) bidder–specific covariates. While many private values (PV) models are nonparametrically identified and testable with commonly available data, identification of common values (CV) models requires stringent assumptions. Nonetheless, the PV model can be tested against the CV alternative, even when neither model is identified.     

Internal Migration and Urban Change in Poland

The paper investigates population change and migration over the period 1984–1994 for communes. There are important conclusions emerging from this study. The first is that we are watching now a profound change of population redistribution patterns in Poland. We observed that direct upwards hierarchical mobility has been markedly modified. The first modification is the substantial reduction of migration from rural to urban locations. There were important changes in the role of cities and towns. Largest cities, massive gainers of the seventies and eighties, have tended to lose population in the mid-nineties. It is likely that they lose population mainly to the neighbouring communes. We believe that a suburbanization process has been put into motion. Medium to large sized towns and cities, in the range between 50,000 and 500,000 as well as small, but not the smallest, towns attract substantial parts of the migration pool.     

Social Networks Derived from Affiliations and Friendships, Multi-informant and Self-reports: Stability, Concordance, Placement of Aggressive and Unpopular Children, and Centrality

This study compares three variations in how researchers construct middle childhood social networks: (1) with friendships or affiliations as a relational tie; (2) with children providing self reports of relationships, or in addition, multi-informant reports of relationships in which they are not involved; and (3) whether network computation is correlational or distance-based . The sample was 357 fourth- and fifth-grade students in 17 classrooms. The strongest differences were between self-reported friendship and affiliative networks. Results showed that compared with affiliations, friendship networks had smaller groups, more isolates, and lower fall-to-spring stability. Agreement in social placement between friendship and affiliative networks was generally average, but poor for unpopular and aggressive children. Multi-informant affiliative networks were most robust in their positioning of aggressive children. Multi-informant centrality was uniquely uncorrelated with aggression. Network computation differences were not substantial. Discussion focuses on recommendations for research and the educational promise of network technology.