Differences in forecasting approaches between product firms and product-service systems (PSS)

This paper examines the forecasting implications for Product-Service Systems (PSS) applications in manufacturing firms. The approach taken is to identify the scope of operations for PSS applications by identifying all the activities associated with the total cost of ownership (TCO). The paper then develops a revenue model for manufacturing firms providing PSS applications. The revenue model identifies three generic revenue streams that provide the basis for discussion on the differences in forecasting approaches between product firms and Product-Service Systems (PSS) in manufacturing firms. The forecasting approaches are different due to the nature of customer involvement in the service aspect of PSS applications. This necessitates an understanding of the customer service experience and the factors affecting this such as the service profit chain which links profitability, customer loyalty and service value to employee satisfaction, capability and productivity. The forecasting approaches identified raises forecasting challenges for each of the three generic revenue sources. These challenges vary from the difficulty in obtaining the service user’s viewpoint through to difficulties in determining market acceptance of PSS applications

The boomerang returns? Accounting for the impact of uncertainties on the dynamics of remanufacturing systems

Recent years have witnessed companies abandon traditional open-loop supply chain structures in favour of closed-loop variants, in a bid to mitigate environmental impacts and exploit economic opportunities. Central to the closed-loop paradigm is remanufacturing: the restoration of used products to useful life. While this operational model has huge potential to extend product life-cycles, the collection and recovery processes diminish the effectiveness of existing control mechanisms for open-loop systems. We systematically review the literature in the field of closed-loop supply chain dynamics, which explores the time-varying interactions of material and information flows in the different elements of remanufacturing supply chains. We supplement this with further reviews of what we call the three ‘pillars’ of such systems, i.e. forecasting, collection, and inventory and production control. This provides us with an interdisciplinary lens to investigate how a ‘boomerang’ effect (i.e. sale, consumption, and return processes) impacts on the behaviour of the closed-loop system and to understand how it can be controlled. To facilitate this, we contrast closed-loop supply chain dynamics research to the well-developed research in each pillar; explore how different disciplines have accommodated the supply, process, demand, and control uncertainties; and provide insights for future research on the dynamics of remanufacturing systems

A demand-driven approach for a multi-agent system in Supply Chain Management

This paper presents the architecture of a multi-agent decision support system for Supply Chain Management (SCM) which has been designed to compete in the TAC SCM game. The behaviour of the system is demand-driven and the agents plan, predict, and react dynamically to changes in the market. The main strength of the system lies in the ability of the Demand agent to predict customer winning bid prices - the highest prices the agent can offer customers and still obtain their orders. This paper investigates the effect of the ability to predict customer order prices on the overall performance of the system. Four strategies are proposed and compared for predicting such prices. The experimental results reveal which strategies are better and show that there is a correlation between the accuracy of the models' predictions and the overall system performance: the more accurate the prediction of customer order prices, the higher the profit. © 2010 Springer-Verlag Berlin Heidelberg

Classification of Empirical Work on Sales Promotion: A Synthesis for Managerial Decision Making

Sales Promotion activities have gained strategic focus as markets are getting complex and competitive. Key managerial concerns in this area are budget allocation across elements of promotions as well as trade vis. consumer promotion, how to design individual sales promotion techniques and a calendar in face of competitive promotions, how to manage them and evaluate the short-term and long-term impact of the same. The objective of this paper is to present, through Meta-analysis, an overview of recent contributions appearing in scholastic journals relevant to the field of Sales Promotion, to classify them into different classificatory framework, report key findings, highlight the managerial implications and raise issues. The database used is the EBSCO host available on VSLLAN (Library)- Indian Institute of Management Ahmedabad). The selection procedure consisted of peer-reviewed scholarly contributions for recent five year period. Out of more than 700 articles 64 article were selected which were analyzed for classifying them into • Perspective addressed: Manufacturer, retailer or consumer. • Market [country where the research was undertaken] • Type of promotion activity addressed - coupon, contest, price cut etc. • Management function addressed: planning, implementation, control [evaluation] • It was found that majority of the articles addressed manufacturers perspectives ; almost all studies were done in developed countries ; coupon as a consumer promotion tool was widely researched; and more than half of the articles were addressing planning related issues. Finally attempt has been made to synthesize managerial implications of the studies under broad topic areas for guidelines for managers.

Flexible Decision Control in an Autonomous Trading Agent

An autonomous trading agent is a complex piece of software that must operate in a competitive economic environment and support a research agenda. We describe the structure of decision processes in the MinneTAC trading agent, focusing on the use of evaluators – configurable, composable modules for data analysis and prediction that are chained together at runtime to support agent decision-making. Through a set of examples, we show how this structure supports sales and procurement decisions, and how those decision processes can be modified in useful ways by changing evaluator configurations. To put this work in context, we also report on results of an informal survey of agent design approaches among the competitors in the Trading Agent Competition for Supply Chain Management (TAC SCM).autonomous trading agent;decision processes

The Influence of Managerial Forces and Users’ Judgements on Forecasting in International Manufacturers: a Grounded Study

Despite the improvements in mathematical forecasting techniques, the increase in forecasting accuracy is not yet significant. Previous research discussed various forecasting issues and techniques without paying attention to users’ forces and behaviours that influence the construction of forecasts. This research investigates this gap through examining the managerial forces that influence the judgements of different users and constructors of forecasts in international pharmaceutical companies. A qualitative research applying Grounded Theory methodology is used to explore the concealed forces in forecasting processes by interviewing different constructors and users of forecasts in international contexts. Using the Coding Matrices, the research identifies the forces which induce users’ judgements, and consequently lead to conflicts. The research adds value by providing assessment criteria of forecasting management in future research

How do top- and bottom-performing companies differ in using business analytics?

Purpose Business analytics (BA) has attracted growing attention mainly due to the phenomena of big data. While studies suggest that BA positively affects organizational performance, there is a lack of academic research. The purpose of this paper, therefore, is to examine the extent to which top- and bottom-performing companies differ regarding their use and organizational facilitation of BA. Design/methodology/approach Hypotheses are developed drawing on the information processing view and contingency theory, and tested using multivariate analysis of variance to analyze data collected from 117 UK manufacture companies. Findings Top- and bottom-performing companies differ significantly in their use of BA, data-driven environment, and level of fit between BA and data-drain environment. Practical implications Extensive use of BA and data-driven decisions will lead to superior firm performance. Companies wishing to use BA to improve decision making and performance need to develop relevant analytical strategy to guide BA activities and design its structure and business processes to embed BA activities. Originality/value This study provides useful management insights into the effective use of BA for improving organizational performance