Pilot learning is a peer-led-team learning. With the worldwide expansion of aviation industry, good pilots are in great demand. The objectives of this research article are to analyze and present the status, procedures, and guidelines to improve the effectiveness of pilot learning and teaching management in Thailand. This qualitative and mixed research, utilizes both secondary and primary data, sourced from documents, observation and in-depth interview of personnel in airlines business. The data gathered from a sample group of 322, comprising pilots and co-pilots, who graduated from Aviation Training Center, Thailand was statistically treated. Pilot learning and teaching management course is taught by both private and government institutions in the country. The students of the program avail both airlines’ and private scholarships for their education. Their qualification meets the airlines’ requirements and the general effectiveness of teaching-learning process is impressive. However, it is suggested that in order to sustain and improve the effectiveness of pilot learning and teaching in, development of new teaching equipment, more aviation training centers, program management guidelines and body checkups for students are required.
试点学习是一种以同伴为主导的团队学习。随着世界范围内航空业的发展，对优秀飞行员的需求越来越大。本研究的目的是分析并提出泰国试点学与教管理的现状、程序和指导方针，以提高试点学与教管理的有效性。这种定性和混合的研究，利用二手和一手数据，从文件，观察和深入采访的人员在航空公司的业务。从322名从泰国航空培训中心(Aviation Training Center)毕业的飞行员和副驾驶员中收集的数据进行了统计处理。试点学习和教学管理课程是由私营和政府机构在全国授课。该项目的学生利用航空公司和私人奖学金进行教育。他们的资格符合航空公司的要求，教学过程的总体效果令人印象深刻。然而，为了维持和提高飞行员学习和教学的有效性，建议开发新的教学设备，增加航空培训中心，项目管理指南和学生的身体检查。
{"title":"Pilot Learning and Teaching Management in Thailand","authors":"Vichian Puncreobutr","doi":"10.2139/ssrn.2772832","DOIUrl":"https://doi.org/10.2139/ssrn.2772832","url":null,"abstract":"Pilot learning is a peer-led-team learning. With the worldwide expansion of aviation industry, good pilots are in great demand. The objectives of this research article are to analyze and present the status, procedures, and guidelines to improve the effectiveness of pilot learning and teaching management in Thailand. This qualitative and mixed research, utilizes both secondary and primary data, sourced from documents, observation and in-depth interview of personnel in airlines business. The data gathered from a sample group of 322, comprising pilots and co-pilots, who graduated from Aviation Training Center, Thailand was statistically treated. Pilot learning and teaching management course is taught by both private and government institutions in the country. The students of the program avail both airlines’ and private scholarships for their education. Their qualification meets the airlines’ requirements and the general effectiveness of teaching-learning process is impressive. However, it is suggested that in order to sustain and improve the effectiveness of pilot learning and teaching in, development of new teaching equipment, more aviation training centers, program management guidelines and body checkups for students are required.","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"90 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129298707","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This research paper investigates the level of product quality based on the dimensions of quality. Customers' priorities when purchasing a two wheeler have been analyzed for different manufacturers using a structured questionnaire. This study uses both an empirical and a fuzzy logic approach to accomplish the research objectives. Among the different brands that are available in the Indian two wheeler market, customers have given priority to high trade-in value, power to climb hilly areas, ease of modification, availability of many accessories, and high pick up during overtaking. This research highlights the effect of high trade value on performance, an effective braking system effect on reliability, and engine life on durability; among two wheeler customers, a two wheeler's conformance to specifications has a positive relationship with lower maintenance during the purchasing process. This study has proposed a framework for product quality and purchasing strategies for customers when buying two wheelers that takes into account the factors affecting the purchase of two wheelers in the Indian market.
{"title":"An Empirical & Fuzzy Logic Approach to Product Quality and Purchase Intention of Customers in Two Wheeler","authors":"Kottala Sriyogi","doi":"10.2139/ssrn.2756324","DOIUrl":"https://doi.org/10.2139/ssrn.2756324","url":null,"abstract":"This research paper investigates the level of product quality based on the dimensions of quality. Customers' priorities when purchasing a two wheeler have been analyzed for different manufacturers using a structured questionnaire. This study uses both an empirical and a fuzzy logic approach to accomplish the research objectives. Among the different brands that are available in the Indian two wheeler market, customers have given priority to high trade-in value, power to climb hilly areas, ease of modification, availability of many accessories, and high pick up during overtaking. This research highlights the effect of high trade value on performance, an effective braking system effect on reliability, and engine life on durability; among two wheeler customers, a two wheeler's conformance to specifications has a positive relationship with lower maintenance during the purchasing process. This study has proposed a framework for product quality and purchasing strategies for customers when buying two wheelers that takes into account the factors affecting the purchase of two wheelers in the Indian market.","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123690119","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Researchers recently suggested that challenges in the form of adversities and constraints can actually promote individuals, teams and firms. However, it remains unclear how such challenges elicit positive innovation performance. Moreover, we still cannot distinguish between the conditions under which challenges enhance or hinder firm innovation performance. In this paper, we review the literature on coping with a specific and central type of challenge – resource challenge, such as a lack of financial or human resources – and propose an underlying mechanism through which firms can benefit from resource challenges. The paper presents an integrative conceptual framework and looks at the key constructs that explain the effects of resource challenges on firm innovation performance. Further, it proposes two key strategies for coping with resource challenges: simplification‐focus and compensation.
{"title":"How Resource Challenges Can Improve Firm Innovation Performance: Identifying Coping Strategies","authors":"Stav Rosenzweig, A. Grinstein","doi":"10.1111/caim.12122","DOIUrl":"https://doi.org/10.1111/caim.12122","url":null,"abstract":"Researchers recently suggested that challenges in the form of adversities and constraints can actually promote individuals, teams and firms. However, it remains unclear how such challenges elicit positive innovation performance. Moreover, we still cannot distinguish between the conditions under which challenges enhance or hinder firm innovation performance. In this paper, we review the literature on coping with a specific and central type of challenge – resource challenge, such as a lack of financial or human resources – and propose an underlying mechanism through which firms can benefit from resource challenges. The paper presents an integrative conceptual framework and looks at the key constructs that explain the effects of resource challenges on firm innovation performance. Further, it proposes two key strategies for coping with resource challenges: simplification‐focus and compensation.","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"119078760","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We consider the actions of two suppliers investing in pollution abatement innovations and also choosing end-of-pipe pollution reduction levels when the buyer chooses different sourcing strategies. To encourage improvements in environmental performance of suppliers in emerging economies, the buyer either sources from both suppliers and allocates more market share to the one with better environmental performance, or sources from only one supplier and gives the one with better environmental performance a higher chance of winning the contract. We consider two dimensions of a buyer's choices: the sourcing strategy (single vs. dual sourcing) and the order allocation mechanism (either linear or proportional). Through equilibrium analysis of this stylized model, we study whether the action of one supplier on investing in pollution abatement will always improve both suppliers' end-of-pipe pollution reduction levels under the various scenarios described. We examine which sourcing strategy encourages more supplier investment in pollution abatement and which strategy results in a higher total production reduction level for the entire supply chain. We also study the buyer's optimal choices of contract terms (the wholesale price and the order adjustment parameter of the order allocation mechanism) to balance her economic objective with her sustainability objective.
{"title":"Motivating Suppliers' Sustainability Performance via Investments in Pollution Abatement Innovations","authors":"Shi Chen, Qinqin Zhang, W. H. Hausman","doi":"10.2139/ssrn.2710253","DOIUrl":"https://doi.org/10.2139/ssrn.2710253","url":null,"abstract":"We consider the actions of two suppliers investing in pollution abatement innovations and also choosing end-of-pipe pollution reduction levels when the buyer chooses different sourcing strategies. To encourage improvements in environmental performance of suppliers in emerging economies, the buyer either sources from both suppliers and allocates more market share to the one with better environmental performance, or sources from only one supplier and gives the one with better environmental performance a higher chance of winning the contract. We consider two dimensions of a buyer's choices: the sourcing strategy (single vs. dual sourcing) and the order allocation mechanism (either linear or proportional). Through equilibrium analysis of this stylized model, we study whether the action of one supplier on investing in pollution abatement will always improve both suppliers' end-of-pipe pollution reduction levels under the various scenarios described. We examine which sourcing strategy encourages more supplier investment in pollution abatement and which strategy results in a higher total production reduction level for the entire supply chain. We also study the buyer's optimal choices of contract terms (the wholesale price and the order adjustment parameter of the order allocation mechanism) to balance her economic objective with her sustainability objective.","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"217 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122392027","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jenna Zacamy, Denis Newman, Valeriy Lazarev, Li Lin
This paper reports findings from a multi-year study of the scale-up of Reading Apprenticeship (RA), an approach to improve academic literacy by helping teachers provide the support students need to be successful readers in the content areas. WestEd’s Strategic Literacy Initiative (SLI), began developing the program in 1995 and has since reached over 100,000 teachers in schools across the country, at the middle school, high school and college levels. In 2010, WestEd received a “Validation�? grant from the Department of Education’s Investing in Innovation Fund (i3) competition to scale-up and study the Reading Apprenticeship Improving Secondary Education (RAISE) project. For this five-year project, SLI focused on three secondary school content areas: English Language Arts, History, and Biology. From the grant, SLI not only funded an independent randomized control trial, but also a parallel effort to study the schools outside of the RCT that were to receive the same professional development and other supports in implementing RA. This scale-up study was intended to provide formative feedback to the SLI developers to help them achieve their goal to build local education agency capacity to disseminate, support, and sustain academic literacy improvement in high school subject areas within their regions. Whereas, the i3 and similar funding can “prime the pump,�? the project must build the capacity to disseminate, support, and sustain the innovation. Ultimately, adoption at the state-level, driven by local adoption and evidence of success, will keep it going. This formative evaluation of RAISE implementation collected and analyzed data on the number of trainings, the reach of the program, and the program elements that were taken up or not by participants. In this study, we followed 239 schools in four states (Utah, Michigan, Indiana, and Pennsylvania) as they participated in the expansion of the program. Schools and teachers were added to the project each year. We surveyed the teachers and principals and participated in many of the project meetings and training events. We tracked participation in the scale-up through sign-in sheets at each of the training events and maintained a spreadsheet of all the schools and teachers recording new additions each year and, less systematically, as teachers left the school or stopped participating in the program. Approximately 1720 teachers received training in the scale-up study side of the overall i3 project. To support inquiry into the scale-up process, we developed an unconventional spiraling logic model (Zacamy, Newman, Lin, & Jaciw, 2015) described below, which was inspired by the effort of putting the SLI approach to scaling up nationally together with Coburn’s (2003) insights in the processes of buy-in and commitment that make an innovation self-sustaining. The logic model pointed to activities that potentially mediated between the RAISE program and changes in educator attitudes. Our first set of studies, review
{"title":"School Processes that Can Drive Scaling-Up of an Innovation, or Contribute to Its Abandonment","authors":"Jenna Zacamy, Denis Newman, Valeriy Lazarev, Li Lin","doi":"10.2139/ssrn.2680438","DOIUrl":"https://doi.org/10.2139/ssrn.2680438","url":null,"abstract":"This paper reports findings from a multi-year study of the scale-up of Reading Apprenticeship (RA), an approach to improve academic literacy by helping teachers provide the support students need to be successful readers in the content areas. WestEd’s Strategic Literacy Initiative (SLI), began developing the program in 1995 and has since reached over 100,000 teachers in schools across the country, at the middle school, high school and college levels. In 2010, WestEd received a “Validation�? grant from the Department of Education’s Investing in Innovation Fund (i3) competition to scale-up and study the Reading Apprenticeship Improving Secondary Education (RAISE) project. For this five-year project, SLI focused on three secondary school content areas: English Language Arts, History, and Biology. From the grant, SLI not only funded an independent randomized control trial, but also a parallel effort to study the schools outside of the RCT that were to receive the same professional development and other supports in implementing RA. This scale-up study was intended to provide formative feedback to the SLI developers to help them achieve their goal to build local education agency capacity to disseminate, support, and sustain academic literacy improvement in high school subject areas within their regions. Whereas, the i3 and similar funding can “prime the pump,�? the project must build the capacity to disseminate, support, and sustain the innovation. Ultimately, adoption at the state-level, driven by local adoption and evidence of success, will keep it going. This formative evaluation of RAISE implementation collected and analyzed data on the number of trainings, the reach of the program, and the program elements that were taken up or not by participants. In this study, we followed 239 schools in four states (Utah, Michigan, Indiana, and Pennsylvania) as they participated in the expansion of the program. Schools and teachers were added to the project each year. We surveyed the teachers and principals and participated in many of the project meetings and training events. We tracked participation in the scale-up through sign-in sheets at each of the training events and maintained a spreadsheet of all the schools and teachers recording new additions each year and, less systematically, as teachers left the school or stopped participating in the program. Approximately 1720 teachers received training in the scale-up study side of the overall i3 project. To support inquiry into the scale-up process, we developed an unconventional spiraling logic model (Zacamy, Newman, Lin, & Jaciw, 2015) described below, which was inspired by the effort of putting the SLI approach to scaling up nationally together with Coburn’s (2003) insights in the processes of buy-in and commitment that make an innovation self-sustaining. The logic model pointed to activities that potentially mediated between the RAISE program and changes in educator attitudes. Our first set of studies, review","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"8 2","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132433638","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The use of business insurance has been traditionally studied in a single-firm setting, but in reality preventing operational accidents involves the (unobservable) efforts of multiple firms. We show that, in a multifirm setting, insurance can be used strategically as a commitment mechanism to prevent excessive free riding by other firms. In the presence of wealth imbalances, contracts alone leave wealth-constrained firms with inefficiently low incentives to exert effort (because of limited liability) and firms with sufficient wealth with excessive incentives. Insurance allows the latter to credibly commit to lower effort, thereby mitigating the incentives of the wealth-constrained firms to free ride. This finding shows that insurance can improve the efficiency of risk management efforts by decreasing free-riding problems. This paper was accepted by Yossi Aviv, operations management.
{"title":"The Strategic Role of Business Insurance","authors":"J. C. Serpa, H. Krishnan","doi":"10.2139/ssrn.2404734","DOIUrl":"https://doi.org/10.2139/ssrn.2404734","url":null,"abstract":"The use of business insurance has been traditionally studied in a single-firm setting, but in reality preventing operational accidents involves the (unobservable) efforts of multiple firms. We show that, in a multifirm setting, insurance can be used strategically as a commitment mechanism to prevent excessive free riding by other firms. In the presence of wealth imbalances, contracts alone leave wealth-constrained firms with inefficiently low incentives to exert effort (because of limited liability) and firms with sufficient wealth with excessive incentives. Insurance allows the latter to credibly commit to lower effort, thereby mitigating the incentives of the wealth-constrained firms to free ride. This finding shows that insurance can improve the efficiency of risk management efforts by decreasing free-riding problems. This paper was accepted by Yossi Aviv, operations management.","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-04-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127708230","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
There are three stages of Enterprise Resource planning System (ERP) Implementation; which are pre implementation, mid- implementation and post-implementation. In pre-implementation stage the pervious researchers found that it fail in Organizational and Technological factors. Therefore, this research studies the Technological Factors availability and the Organizational Factor readiness at Greater Amman Municipality (GAM) Case study. The statistical results showed that there are availability of the Organizational factor (Organizational Objectives and Services, Organization culture, and Business process) for success of ERP system, and indicate the technological infrastructure is available og GAM.
{"title":"Relationship Between Organizational Factors, Technological Factors and Enterprise Resource Planning System Implementation","authors":"Suha Afaneh, Issam Alhadid, Heba Almalahmeh","doi":"10.5121/IJMIT.2015.7101","DOIUrl":"https://doi.org/10.5121/IJMIT.2015.7101","url":null,"abstract":"There are three stages of Enterprise Resource planning System (ERP) Implementation; which are pre implementation, mid- implementation and post-implementation. In pre-implementation stage the pervious researchers found that it fail in Organizational and Technological factors. Therefore, this research studies the Technological Factors availability and the Organizational Factor readiness at Greater Amman Municipality (GAM) Case study. The statistical results showed that there are availability of the Organizational factor (Organizational Objectives and Services, Organization culture, and Business process) for success of ERP system, and indicate the technological infrastructure is available og GAM.","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117124192","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2014-09-22DOI: 10.1142/9789814520164_0001
A. Batabyal, P. Nijkamp
The study of interregional trade using a theoretical framework has now attracted a lot of attention from economists and regional scientists in the last three decades. Even so, this study has definitely lagged the study of international trade which has been ongoing for over three centuries. Put differently, although international trade has been studied extensively by economists, interregional trade has received much less attention from both economists and regional scientists. Given this state of affairs, it is fair to say that there are several theoretical and empirical questions in interregional trade that have received little or no attention in the literature. Therefore, the purpose of this paper is to introduce and discuss the eleven chapters in this book that provide an analytic perspective on some of these outstanding research questions.
{"title":"Introduction to the Region and Trade: New Analytical Directions","authors":"A. Batabyal, P. Nijkamp","doi":"10.1142/9789814520164_0001","DOIUrl":"https://doi.org/10.1142/9789814520164_0001","url":null,"abstract":"The study of interregional trade using a theoretical framework has now attracted a lot of attention from economists and regional scientists in the last three decades. Even so, this study has definitely lagged the study of international trade which has been ongoing for over three centuries. Put differently, although international trade has been studied extensively by economists, interregional trade has received much less attention from both economists and regional scientists. Given this state of affairs, it is fair to say that there are several theoretical and empirical questions in interregional trade that have received little or no attention in the literature. Therefore, the purpose of this paper is to introduce and discuss the eleven chapters in this book that provide an analytic perspective on some of these outstanding research questions.","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132476321","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2014-05-20DOI: 10.1108/IMDS-10-2013-0447
S. Spalek
Purpose – There is a significant knowledge gap in the common understanding regarding the value that investment leading to an increase in project management maturity brings to the organisation. The purpose of this paper is to narrow this gap by investigating the relationship between an increase in the project management maturity level and the project's performance. Additionally, it advocates the investment roadmap approach. Design/methodology/approach – This study is part of a worldwide research initiative into maturity in project management covering 447 global companies. For this purpose, survey data from experts from 194 select companies was analysed. Findings – The cost of forthcoming projects depends on the level of maturity of project management and type of industry. Research limitations/implications – The study is limited to three different industries (machinery, construction and information technology) and by the method of assessing their future project costs. New research directions are suggested. ...
{"title":"Does Investment in Project Management Pay Off?","authors":"S. Spalek","doi":"10.1108/IMDS-10-2013-0447","DOIUrl":"https://doi.org/10.1108/IMDS-10-2013-0447","url":null,"abstract":"Purpose – There is a significant knowledge gap in the common understanding regarding the value that investment leading to an increase in project management maturity brings to the organisation. The purpose of this paper is to narrow this gap by investigating the relationship between an increase in the project management maturity level and the project's performance. Additionally, it advocates the investment roadmap approach. Design/methodology/approach – This study is part of a worldwide research initiative into maturity in project management covering 447 global companies. For this purpose, survey data from experts from 194 select companies was analysed. Findings – The cost of forthcoming projects depends on the level of maturity of project management and type of industry. Research limitations/implications – The study is limited to three different industries (machinery, construction and information technology) and by the method of assessing their future project costs. New research directions are suggested. ...","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133615161","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
After decades of offshoring production across the world, companies are rethinking their global networks. Local sourcing is receiving more attention, but it remains challenging to balance the offshore sourcing cost advantage against the increased inventories due to its longer leadtime, and against the cost and (volume-)flexibility of each source's capacity. To guide strategic allocation in this global network decision, this paper establishes reasonably simple prescriptions that capture the key drivers. We adopt a conventional discrete-time inventory model with a linear control rule that smoothes orders and allows an exact and analytically-tractable analysis of single and dual sourcing policies under normal demand. Distinguishing features of our model are that it captures each source's leadtime, capacity cost and flexibility to work overtime. We use Lagrange's inversion theorem to provide exact and simple square-root bound formulae for the strategic sourcing allocations and the value of dual sourcing. The formulae provide structural insight on the impact of financial, operational and demand parameters, and a starting point for quantitative decision making. We investigate the robustness of our results by comparing the smoothing policy with existing single and dual sourcing models in a simulation study that relaxes model assumptions.
{"title":"Global Dual Sourcing and Order Smoothing: The Impact of Capacity and Leadtimes","authors":"R. Boute, Jan A. Van Mieghem","doi":"10.2139/ssrn.2181542","DOIUrl":"https://doi.org/10.2139/ssrn.2181542","url":null,"abstract":"After decades of offshoring production across the world, companies are rethinking their global networks. Local sourcing is receiving more attention, but it remains challenging to balance the offshore sourcing cost advantage against the increased inventories due to its longer leadtime, and against the cost and (volume-)flexibility of each source's capacity. To guide strategic allocation in this global network decision, this paper establishes reasonably simple prescriptions that capture the key drivers. We adopt a conventional discrete-time inventory model with a linear control rule that smoothes orders and allows an exact and analytically-tractable analysis of single and dual sourcing policies under normal demand. Distinguishing features of our model are that it captures each source's leadtime, capacity cost and flexibility to work overtime. We use Lagrange's inversion theorem to provide exact and simple square-root bound formulae for the strategic sourcing allocations and the value of dual sourcing. The formulae provide structural insight on the impact of financial, operational and demand parameters, and a starting point for quantitative decision making. We investigate the robustness of our results by comparing the smoothing policy with existing single and dual sourcing models in a simulation study that relaxes model assumptions.","PeriodicalId":369181,"journal":{"name":"Operations Strategy eJournal","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126277392","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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