Modular Network Design: Using Information and Communication Technology to Allocate Production Tasks in a Virtual Organization*

The increased interest in customer service and the trend towards customization gives rise to new organizational forms such as the virtual organization. This paper introduces the Modular Network Design (MND) approach to complement Mowshowitz' (1997) theory of virtual organization. This theory focuses on metamanagement of the virtual organization and consists of four activities: (1) determine and analyze customer requirements, (2) track the possibilities for satisfying these requirements, (3) develop and allocate production tasks among the members of the virtual organization, and (4) assess and adjust tasks and allocation procedures. The MND approach elaborates on this theory by breaking down both the requirements and the production tasks into modular entities, and by measuring the performance of the resulting virtual network in terms of operating costs and throughput time. The major contribution of the MND approach lies in its ability to support the assessment of alternative allocations of production tasks among the members of a virtual organization, using Information and Communication Technology (ICT) as enabler. The assessment of such alternative designs is illustrated by an application of MND in the air cargo industry. The results show how the virtual organization and its members can realize significant improvements in operating costs and throughput times when applying ICT to link and reallocate their modular production tasks in response to customized orders.     

Examining the Impact of Interorganizational Systems on Process Efficiency and Sourcing Leverage in Buyer–Supplier Dyads

Manufacturing firms are increasingly seeking cost and other competitive advantages by tightly coupling and managing their relationship with suppliers. Among other mechanisms, interorganizational systems (IOS) that facilitate boundary‐spanning activities of a firm enable them to effectively manage different types of buyer–supplier relationships. This study integrates literature from the operations and information systems fields to create a joint perspective in understanding the linkages between the nature of the IOS, buyer–supplier relationships, and manufacturing performance at the dyadic level. External integration, breadth, and initiation are used to capture IOS functionality, and their effect on process efficiency and sourcing leverage is examined. The study also explores the differences in how manufacturing firms use IOS when operating under varying levels of competitive intensity and product standardization. In order to test the research models and related hypothesis, empirical data on buyer–supplier dyads is collected from manufacturing firms. The results show that only higher levels of external integration that go beyond simple procurement systems, as well as who initiates the IOS, allow manufacturing firms to enhance process efficiency. In contrast, IOS breadth and IOS initiation enable manufacturing firms to enhance sourcing leverage over their suppliers. In addition, firms making standardized products in highly competitive environments tend to achieve higher process efficiencies and have higher levels of external integration. The study shows how specific IOS decisions allow manufacturing firms to better manage their dependence on the supplier for resources and thereby select system functionalities that are consistent with their own operating environments and the desired supply chain design.     

Measuring Market‐Manufacturing Congruence: Conceptual Reaffirmations and Mathematical Modifications

Narasimhan and Wang (2000) provide a valuable addition to the research base by identifying a limitation in two of the original equations in Bozarth and Berry (1997), which we resolve, and a possible research direction for the calibration of indifference profiles. However, they fall short in their interpretation of key conceptual and methodological issues, including the distinction between indifference and ideal profiles, the difference between individual profile dimensions and overall congruence, and firm versus industry‐level manufacturing strategy research. We use this opportunity to clear up these points of confusion, and to reaffirm the value of the methodology introduced in Bozarth and Berry (1997).     

The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities

Supply chain disruptions and the associated operational and financial risks represent the most pressing concern facing firms that compete in today's global marketplace. Extant research has not only confirmed the costly nature of supply chain disruptions but has also contributed relevant insights on such related issues as supply chain risks, vulnerability, resilience, and continuity. In this conceptual note, we focus on a relatively unexplored issue, asking and answering the question of how and why one supply chain disruption would be more severe than another. In doing so, we argue, de facto, that supply chain disruptions are unavoidable and, as a consequence, that all supply chains are inherently risky. Employing a multiple‐method, multiple‐source empirical research design, we derive novel insights, presented as six propositions that relate the severity of supply chain disruptions (i) to the three supply chain design characteristics of density, complexity, and node criticality and (ii) to the two supply chain mitigation capabilities of recovery and warning. These findings not only augment existing knowledge related to supply chain risk, vulnerability, resilience, and business continuity planning but also call into question the wisdom of pursuing such practices as supply base reduction, global sourcing, and sourcing from supply clusters.     

The Perishability of Online Grocers*

In this article we explore the profitability of different operations models used by online grocers and develop a linear demand model in a competitive setting to better understand the trade‐offs made by two competing online grocers in choices for distribution strategy (leverage or direct) and product focus (perishable or nonperishable). We find that the results derived in the duopoly setting are different from those in a monopolistic setting. Specifically, we determine that there is a threshold value for the secondary competitive effects in the demand function that determines how the prices and profitability of an online grocer will be affected by the supply chain length of its competitor. There is also a threshold value for the ratio of supply chain lengths of the two competitors that determines whether product perishability increases or decreases profits. We demonstrate that the existence of this threshold is robust when considering capacity constraints. Further, we show, assuming that supply chain length can be optimized, how the relative size of the infrastructure change cost (when compared with that of the competitor) coupled with the perishability of the product determines the profitability of an investment leading to a shorter supply chain.     

The Effectiveness of Decisional Guidance: An Empirical Evaluation

Decisional guidance is defined as how a decision support system (DSS) influences its users as they structure and execute the decision‐making process. It is assumed that decisional guidance has profound effects on decision making, but these effects are understudied and empirically unproven. This paper describes an empirical, laboratory‐experiment‐based evaluation of the effectiveness of deliberate decisional guidance and its four types. We developed and used a comprehensive model consisting of four evaluation criteria: decision quality, user satisfaction, user learning, and decision‐making efficiency. On these criteria, we compared decisional guidance versus no guidance, informative versus suggestive decisional guidance, and predefined versus dynamic decisional guidance. We found that deliberate decisional guidance was more effective on all four criteria; suggestive guidance was more effective in improving decision quality and user satisfaction, and informative guidance was more effective in user learning about the problem domain, whereas dynamic guidance was more effective than predefined guidance in improving decision quality and user learning; and both suggestive guidance and dynamic guidance reduced the decision time.     

An Alternative FMEA Method for Simple and Accurate Ranking of Failure Modes

Failure modes and effects analysis (FMEA) is a methodology for prioritizing actions to mitigate the effects of failures in products and processes. Although originally used by product designers, FMEA is currently more widely used in industry in Six Sigma quality improvement efforts. Two prominent criticisms of the traditional application of FMEA are that the risk priority number (RPN) used to rank failure modes is an invalid measure according to measurement theory, and that the RPN does not weight the three decision criteria used in FMEA. Various methods have been proposed to mitigate these concerns, including many using fuzzy logic. We develop a new ranking method in this article using a data‐elicitation technique. Furthermore, we develop an efficient means of eliciting data to reduce the effort associated with the new method. Subsequently, we conduct an experimental study to evaluate that proposed method against the traditional method using RPN and against an approach using fuzzy logic.     

An isomorphism check for two-level fractional factorial designs

Two fractional factorial designs are isomorphic if one can be obtained from the other by reordering the treatment combinations, relabelling the factor levels and relabelling the factors. By defining a word-pattern matrix, we are able to create a new isomorphism check which is much faster than existing checks for certain situations. We combine this with a new, extremely fast, sufficient condition for non-isomorphism to avoid checking certain cases. We then create a faster search algorithm by combining the Bingham and Sitter [1999. Minimum aberration fractional factorial split-plot designs. Technometrics 41, 62–70] search algorithm, the isomorphism check algorithm of Clark and Dean [2001. Equivalence of fractional factorial designs. Statist. Sinica 11, 537–547] with our proposed isomorphism check. The algorithm is used to extend the known set of existing non-isomorphic 128-run two-level regular designs with resolution ?4$?4$ to situations with 12, 13, 14, 15 and 16 factors, 256- and 512-run designs with resolution ?5$?5$ and ?17$?17$ factors and 1024-run even designs with resolution ?6$?6$ and ?18$?18$ factors.     

红木家具改良设计的创新方法及其应用

红木家具产品的创新设计研发工作是我国红木家具产业健康可持续发展面临的极为紧迫而务实的课题。文章分析了红木家具改良产品设计的现状,提出针对红木家具改良设计的主要创意思路和设计方法,并介绍了运用创新思维理论和创新设计方法进行操作的红木家具改良设计实际案例。     

Role of flexibility in supply chain design and modeling—Introduction to the special issue

In this introductory note, we describe the motivation behind this special issue on supply chain design and modeling. We begin by noting the potential opportunities offered by flexibility of a system in enhancing its functionalities and capabilities. After defining the nature of flexibility, we briefly describe flexibility in a supply chain, pertinent issues, and potential tools and techniques utilized for designing and modeling flexibility in it. We close out with a brief review of the articles in this issue and their relevance to the interests of decision makers.