Modeling Overstock

Two main problems have been emerging in supply chain management: the increasing pressure to reduce working capital and the growing variety of products. Most of the popular indicators have been developed based on a controlled environment. A new indicator is now proposed, based on the uncertainty of the demand, the flexibility of the supply chains, the evolution of the products lifecycle and the fulfillment of a required service level. The model to support the indicator will be developed within the real options approach.overstock, stock management, real options

Modeling Overstock

Two main problems have been emerging in supply chain management: the increasing pressure to reduce working capital and the growing variety of products. Most of the popular indicators have been developed based on a controlled environment. A new indicator is now proposed, based on the uncertainty of the demand, the flexibility of the supply chains, the evolution of the products lifecycle and the fulfillment of a required service level. The model to support the indicator will be developed within the real options approach

The Relationship between Exploration and Exploitation Strategies, Manufacturing Flexibility, and Organizational Learning: An Empirical Comparison between Non-ISO and ISO Certified Firms

The markets in which organizations currently operate require them to use behaviour based on both exploitation strategy and exploration strategy, each of which contributes fundamental benefits for the firm’s success. Exploitation strategy attempts to obtain the maximum advantage from existing abilities, whereas exploration strategy searches for new ways for the organization to adapt. Further, since manufacturing markets are characterized by short product life, they require a high level of manufacturing flexibility, which can play a crucial role in the development of the exploitation and exploration strategies. This study analyses the relationship of manufacturing flexibility to exploitation and exploration strategies, taking into account an issue of maximum international scope: the implementation of ISO standards. In many international markets, ISO implementation is crucial in enabling organizations to be competitive. However, no consensus has been reached concerning the real benefits that these systems provide to the organizations that implement them. The main goal of our study is to analyse whether there are significant differences in the relationship of manufacturing flexibility to exploitation and exploration strategies in ISO 9001:2000 certified organizations and non-certified organizations. Our results show that most of the relationships analysed are only significant in ISO certified organizations. As an added value, the study analyses the relationship of exploitation and exploration strategies to organizational learning orientation and finds this relationship to be significant in all cases.This work has been developed with funding and collaboration of the Ministry of Science and Innovation and the European Union. Project I+D ECO2010-15885

Impact of manufacturing flexibility on manufacturing performance and business performance among Malaysian manufacturing firms

The unclear relationships between manufacturing flexibility, manufacturing performance and business performance have been indicated in past literature. To seal the gap, this study aimed to investigate the impact of manufacturing flexibility on manufacturing performance and business performance. In this study, the researcher proposed a mediating framework where manufacturing performance serves as a mediator in the relationship between manufacturing flexibility and business performance. The components of manufacturing flexibility were mix flexibility, new product flexibility, labor flexibility, machine flexibility, material handling flexibility, routing flexibility and volume flexibility. The measures for manufacturing performance were product quality, cost reduction, lead time reduction, productivity and inventory minimization. Product market performance, customer satisfaction and profitability were used as the measures for business performance. Four main hypotheses were developed to test the interrelationships between manufacturing flexibility, manufacturing performance and business performance. The study was a cross-sectional study, employing the survey methodology, conducted in five manufacturing industries in Malaysia. The data obtained from 137 returned questionnaires were analysed using correlational and regression analyses. Results of the correlation analyses indicated that components of manufacturing flexibility were positively and highly correlated among themselves, thus suggesting that the components were interdependent. Meanwhile, findings of the regression analyses provided support that manufacturing flexibility has significant positive impacts on both manufacturing performance and business performance. In addition, the mediation role of manufacturing performance on the relationship between manufacturing flexibility and business performance was revealed. In other words, manufacturing flexibility improves business performance both directly and indirectly via manufacturing performance as the mediator. Specifically, all four main hypotheses tested in this study were supported. In conclusion, this empirical study provides insights about the interrelationships between manufacturing flexibility, manufacturing performance and business performance. Hence, this study allows researchers and practitioners to gain in-depth knowledge about the concept of manufacturing flexibility and its impacts