Pub Date : 2022-08-31DOI: 10.32956/kopoms.2022.33.3.449
Seung-Yeon Joo, Seungjun Lee
Previously, manufacturers in the global economy produced products by exchanging technologies and know-how through the global value chain (GVC), but they faced a major turning point due to COVID-19. In this process, Korean automobile manufacturers are also expected to have simultaneously been affected by the existing supply chain. This study therefore examines changes in the management efficiency of the Korean automobile industry during the COVID-19 period. Changes in management efficiency before and after COVID-19 were examined through DEA and Malmquist method with information on the domestic automobile manufacturing sector among external audit-mandated companies from “KisValue” database. The results revealed that in the finished car and component industries, productivity decreased compared to the preCOVID-19 period, but increased in the vehicle body and trailer fields. Taking this case as a lesson and considering a pandemic situation such as COVID-19 is highly likely to occur again, diversification and localization of the supply chain for parts and materials are considered important.
{"title":"Changes in Management Efficiency in the Korean Automobile Industry During COVID-19","authors":"Seung-Yeon Joo, Seungjun Lee","doi":"10.32956/kopoms.2022.33.3.449","DOIUrl":"https://doi.org/10.32956/kopoms.2022.33.3.449","url":null,"abstract":"Previously, manufacturers in the global economy produced products by exchanging technologies and know-how through the global value chain (GVC), but they faced a major turning point due to COVID-19. In this process, Korean automobile manufacturers are also expected to have simultaneously been affected by the existing supply chain. This study therefore examines changes in the management efficiency of the Korean automobile industry during the COVID-19 period. Changes in management efficiency before and after COVID-19 were examined through DEA and Malmquist method with information on the domestic automobile manufacturing sector among external audit-mandated companies from “KisValue” database. The results revealed that in the finished car and component industries, productivity decreased compared to the preCOVID-19 period, but increased in the vehicle body and trailer fields. Taking this case as a lesson and considering a pandemic situation such as COVID-19 is highly likely to occur again, diversification and localization of the supply chain for parts and materials are considered important.","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121803933","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 : 2022-08-31DOI: 10.32956/kopoms.2022.33.3.523
Sung-Kwan An, Choonjong Kwak
The demand for demand-responsive transit (DRT) services has continuously increased for vulnerable transport users such as the elderly and disabled. DRT operators must maximize efficiency because their fares are regulated by law despite their high operating costs. Although a comprehensive evaluation of the efficiency of DRT services is imperative, little work has been done in this area. The main objective of this research is to identify the variables that significantly affect the operational efficiency of DRT service providers and propose ways to improve the competitiveness of DRT services. This study presents a new approach to analyzing the efficiency of DRT operators and investigating the determinants of their efficiency. The results indicate the significant impacts of minimum reservation time, maximum reservation time, and operational experience on efficiency. Unlike previous studies, however, ownership type does not significantly affect efficiency. This study presents guidance for policy makers and managers who want to develop transparent management strategies.
{"title":"Key Determinants of the Efficiency of Transportation Services for the Disabled","authors":"Sung-Kwan An, Choonjong Kwak","doi":"10.32956/kopoms.2022.33.3.523","DOIUrl":"https://doi.org/10.32956/kopoms.2022.33.3.523","url":null,"abstract":"The demand for demand-responsive transit (DRT) services has continuously increased for vulnerable transport users such as the elderly and disabled. DRT operators must maximize efficiency because their fares are regulated by law despite their high operating costs. Although a comprehensive evaluation of the efficiency of DRT services is imperative, little work has been done in this area. The main objective of this research is to identify the variables that significantly affect the operational efficiency of DRT service providers and propose ways to improve the competitiveness of DRT services. This study presents a new approach to analyzing the efficiency of DRT operators and investigating the determinants of their efficiency. The results indicate the significant impacts of minimum reservation time, maximum reservation time, and operational experience on efficiency. Unlike previous studies, however, ownership type does not significantly affect efficiency. This study presents guidance for policy makers and managers who want to develop transparent management strategies.","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133030782","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 : 2022-08-31DOI: 10.32956/kopoms.2022.33.3.463
Sehyeuk Im, Minseok Kim, D. Choi, Bomi Song, Gitae Park
Since the COVID-19 pandemic, the trend of green logistics has been accelerating in the logistics industry. The purpose of this study is to analyze the changes in social interest in green logistics before and after the COVID-19 pandemic, based on keywords extracted from news articles. To this end, two periods were selected, pre-pandemic (2018-2019) and postpandemic (2020-2021). Text analysis and topic modeling were conducted for the news articles related to green logistics in each period. In order to collect the news articles, the Big Kinds database was used, and key topics for each period were derived by applying the Latent Dirichlet Allocation (LDA) technique, a topic modeling methodology. The derived key topics were further classified into subtopics such as storage, unloading, packaging, transportation/distribution, and corporate strategy/policy in relation to logistics by functions. As a result of the study, it was confirmed that in the post-pandemic period, interest in green logistics increased in the media, and there was a change in the tendency of use of specific keywords and topics. In addition, with the emergence of new topics related to green storage, it was suggested that the green storage field could become a new business model for green logistics.
{"title":"Analysis of Key Topics in Green Logistics Using LDA: Focusing on Keywords Before and After the COVID-19","authors":"Sehyeuk Im, Minseok Kim, D. Choi, Bomi Song, Gitae Park","doi":"10.32956/kopoms.2022.33.3.463","DOIUrl":"https://doi.org/10.32956/kopoms.2022.33.3.463","url":null,"abstract":"Since the COVID-19 pandemic, the trend of green logistics has been accelerating in the logistics industry. The purpose of this study is to analyze the changes in social interest in green logistics before and after the COVID-19 pandemic, based on keywords extracted from news articles. To this end, two periods were selected, pre-pandemic (2018-2019) and postpandemic (2020-2021). Text analysis and topic modeling were conducted for the news articles related to green logistics in each period. In order to collect the news articles, the Big Kinds database was used, and key topics for each period were derived by applying the Latent Dirichlet Allocation (LDA) technique, a topic modeling methodology. The derived key topics were further classified into subtopics such as storage, unloading, packaging, transportation/distribution, and corporate strategy/policy in relation to logistics by functions. As a result of the study, it was confirmed that in the post-pandemic period, interest in green logistics increased in the media, and there was a change in the tendency of use of specific keywords and topics. In addition, with the emergence of new topics related to green storage, it was suggested that the green storage field could become a new business model for green logistics.","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"238 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116447962","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 : 2022-05-31DOI: 10.32956/kopoms.2022.33.2.223
Jihye Park, D. Jung
Given that the small and medium-sized enterprises (SMEs) are working in an increasingly competitive business environment with limited resources, manufacturing flexibility can be a vital source of a competitive advantage. Thus, having strong attention to manufacturing flexibility as a good means for improving the competitiveness of SMEs in the Korean manufacturing industry, this study investigates 1) the relationship between cross-functional integration (CFI), manufacturing flexibility, and customer satisfaction and 2) the role of a cross-functional team (CFT) made up of employees from different functional departments. From a large-scale sample of 504 SME data, this study empirically confirms that a higher level of integration between manufacturing and R&D tends to improve manufacturing flexibility, which ultimately increases customer satisfaction. Moreover, even when manufacturing-R&D integration is insufficient, forming a CFT secures a high level of manufacturing flexibility, which implies that a CFT officializes the need for the concentration and orchestration of a firm's diverse competence and helps to cultivate capabilities for enhancing the organizational performance.
{"title":"A Study on the Relationship Between Manufacturing–R&D Integration and the Customer Satisfaction: Focusing on the Role of a Cross-Functional Team and Manufacturing Flexibility","authors":"Jihye Park, D. Jung","doi":"10.32956/kopoms.2022.33.2.223","DOIUrl":"https://doi.org/10.32956/kopoms.2022.33.2.223","url":null,"abstract":"Given that the small and medium-sized enterprises (SMEs) are working in an increasingly competitive business environment with limited resources, manufacturing flexibility can be a vital source of a competitive advantage. Thus, having strong attention to manufacturing flexibility as a good means for improving the competitiveness of SMEs in the Korean manufacturing industry, this study investigates 1) the relationship between cross-functional integration (CFI), manufacturing flexibility, and customer satisfaction and 2) the role of a cross-functional team (CFT) made up of employees from different functional departments. From a large-scale sample of 504 SME data, this study empirically confirms that a higher level of integration between manufacturing and R&D tends to improve manufacturing flexibility, which ultimately increases customer satisfaction. Moreover, even when manufacturing-R&D integration is insufficient, forming a CFT secures a high level of manufacturing flexibility, which implies that a CFT officializes the need for the concentration and orchestration of a firm's diverse competence and helps to cultivate capabilities for enhancing the organizational performance. \u0000","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131044786","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 : 2022-05-31DOI: 10.32956/kopoms.2022.33.2.399
H. Kim
We consider the postponement strategy of transnational fashion buyers, showing aggressive investment in embedding big data analytics and active engagement in managing quick response third-world contractors. Based on a two-stage multi-product newsvendor model, we show that such two strategic behaviors of fashion buyers allow them to reduce their committed orders with contractors, resulting in a complementary effect. Thus, such initiatives should be implemented simultaneously as the critical tasks for transnational fashion buyers to improve their in-season reactivity. Next, from the operational level, our results show that the conventional wisdom of risk-pooling suited for producer-driven supply chains is not valid if the buyers can manage the cost of delayed orders effectively. Otherwise, their benefit is insignificant even though they may need to follow the conventional wisdom. In the presence of restricted chances to reduce costs of delayed orders in practice, such results indicate that reducing options and complexity in the assortment plan for intelligent management of the costs correspond to another critical task for fashion buyers with the recent trend of fabric consolidation and material platforming.
{"title":"패션 바이어의 구매자 주도 지연전략의 핵심과제","authors":"H. Kim","doi":"10.32956/kopoms.2022.33.2.399","DOIUrl":"https://doi.org/10.32956/kopoms.2022.33.2.399","url":null,"abstract":"We consider the postponement strategy of transnational fashion buyers, showing aggressive investment in embedding big data analytics and active engagement in managing quick response third-world contractors. Based on a two-stage multi-product newsvendor model, we show that such two strategic behaviors of fashion buyers allow them to reduce their committed orders with contractors, resulting in a complementary effect. Thus, such initiatives should be implemented simultaneously as the critical tasks for transnational fashion buyers to improve their in-season reactivity. Next, from the operational level, our results show that the conventional wisdom of risk-pooling suited for producer-driven supply chains is not valid if the buyers can manage the cost of delayed orders effectively. Otherwise, their benefit is insignificant even though they may need to follow the conventional wisdom. In the presence of restricted chances to reduce costs of delayed orders in practice, such results indicate that reducing options and complexity in the assortment plan for intelligent management of the costs correspond to another critical task for fashion buyers with the recent trend of fabric consolidation and material platforming. \u0000","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"260 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116211069","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 : 2022-05-31DOI: 10.7737/JKORMS.2017.42.2.019
Kim， Jeong-yeon, Y. Seo
In this study, we developed an optimal sourcing strategy considering compensation orders to mitigate the supply chain disruption risks and yield uncertainty. Additionally, we proposed an approximation method that can perform quick calculations to ascertain the optimal number of suppliers and initial order quantity. Finally, by using a numerical example, we confirmed that if there is a disruption probability, it is desirable to distribute the risk by dividing the order into small portions from multiple suppliers. This study proposes an optimal procurement strategy under disruption risks and serves as a guide to establishing a procurement strategy that maximizes a firm's profit in the long term.
{"title":"Joint Optimization of the Number of Suppliers and the Order Quantities Considering Compensation Orders under Supply Chain Disruptions and Yield Uncertainty","authors":"Kim， Jeong-yeon, Y. Seo","doi":"10.7737/JKORMS.2017.42.2.019","DOIUrl":"https://doi.org/10.7737/JKORMS.2017.42.2.019","url":null,"abstract":"In this study, we developed an optimal sourcing strategy considering compensation orders to mitigate the supply chain disruption risks and yield uncertainty. Additionally, we proposed an approximation method that can perform quick calculations to ascertain the optimal number of suppliers and initial order quantity. Finally, by using a numerical example, we confirmed that if there is a disruption probability, it is desirable to distribute the risk by dividing the order into small portions from multiple suppliers. This study proposes an optimal procurement strategy under disruption risks and serves as a guide to establishing a procurement strategy that maximizes a firm's profit in the long term. \u0000","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"290 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125744835","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 : 2022-05-31DOI: 10.32956/kopoms.2022.33.2.369
Hyun-Sun Lim, Hyojin Kim, Daesik Hur, S. Min
Supply chain agility is defined as a firm’s ability to respond nimbly to market changes. Although existing studies examine the diverse antecedents of supply chain agility, most of them primarily focus on the firm’s internal capabilities as antecedents of supply chain agility, and the scope of research is limited to a single country. Based on the relational view of a firm, in this study, we illustrate that the external capability of the firm created by cooperation with supply chain partners can be an important antecedent of supply chain agility. We hypothesize that relational norms (i.e., trust) and cooperative behaviors between supply chain partners (i.e., two-way information sharing with supplier/buyer firms, supply chain coordination) are the sources of supply chain agility. To test the hypotheses, we employ survey data collected from 219 manufacturing firms in the electronics, transportation, and machinery industries in 15 countries. The structural equation modeling indicates that trust has a significant effect on both two-way information sharing and supply chain coordination, which, in turn, positively impacts supply chain agility indirectly. In addition, supply chain coordination directly affects supply chain agility, whereas two-way information sharing indirectly leads to supply chain agility via supply chain coordination.
{"title":"Effect of Supply Chain Relational Capability on Supply Chain Agility of Manufacturing Firms: A Relational View Approach","authors":"Hyun-Sun Lim, Hyojin Kim, Daesik Hur, S. Min","doi":"10.32956/kopoms.2022.33.2.369","DOIUrl":"https://doi.org/10.32956/kopoms.2022.33.2.369","url":null,"abstract":"Supply chain agility is defined as a firm’s ability to respond nimbly to market changes. Although existing studies examine the diverse antecedents of supply chain agility, most of them primarily focus on the firm’s internal capabilities as antecedents of supply chain agility, and the scope of research is limited to a single country. Based on the relational view of a firm, in this study, we illustrate that the external capability of the firm created by cooperation with supply chain partners can be an important antecedent of supply chain agility. We hypothesize that relational norms (i.e., trust) and cooperative behaviors between supply chain partners (i.e., two-way information sharing with supplier/buyer firms, supply chain coordination) are the sources of supply chain agility. To test the hypotheses, we employ survey data collected from 219 manufacturing firms in the electronics, transportation, and machinery industries in 15 countries. The structural equation modeling indicates that trust has a significant effect on both two-way information sharing and supply chain coordination, which, in turn, positively impacts supply chain agility indirectly. In addition, supply chain coordination directly affects supply chain agility, whereas two-way information sharing indirectly leads to supply chain agility via supply chain coordination. \u0000","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"329 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122327055","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 : 2022-05-31DOI: 10.32956/kopoms.2022.33.2.283
Hyejin Cho, Choong Ho Shin, Pyoungsoo Lee
Intensified global competition compels firms to focus on their core competencies and develop and secure additional competencies through supply chain cooperation. Among the various types of supply chain relations, subcontracting raises concerns about the asymmetric bargaining power between the subcontracting company and the subcontractors. This calls for a discussion on supply chain cooperation in subcontracting relations and its effect on business outcomes. This study analyzed the influence of voluntary support policies of buyer firms for their subcontractors on the level of buyers’ internationalization. Using a sample of 1,016 Korean manufacturing firms, we found that buyer’s management support for subcontractors, high proportion of cash settlement, and pursuit of long-term subcontracting relations raise the level of buyer’s internationalization. This implies that the policies that support subcontractors can create a virtuous cycle for better business outcomes for buyers. Additionally, the assessment of the moderating effect of business group membership of buyers revealed that buyers who are members of business groups experience less positive influence of subcontractor supporting policies on internationalization. Based on these results, academic and practical implications are presented, and future research directions are discussed.
{"title":"Effect of Buyer’s Support for Subcontractor on Buyer’s Internationalization","authors":"Hyejin Cho, Choong Ho Shin, Pyoungsoo Lee","doi":"10.32956/kopoms.2022.33.2.283","DOIUrl":"https://doi.org/10.32956/kopoms.2022.33.2.283","url":null,"abstract":"Intensified global competition compels firms to focus on their core competencies and develop and secure additional competencies through supply chain cooperation. Among the various types of supply chain relations, subcontracting raises concerns about the asymmetric bargaining power between the subcontracting company and the subcontractors. This calls for a discussion on supply chain cooperation in subcontracting relations and its effect on business outcomes. This study analyzed the influence of voluntary support policies of buyer firms for their subcontractors on the level of buyers’ internationalization. Using a sample of 1,016 Korean manufacturing firms, we found that buyer’s management support for subcontractors, high proportion of cash settlement, and pursuit of long-term subcontracting relations raise the level of buyer’s internationalization. This implies that the policies that support subcontractors can create a virtuous cycle for better business outcomes for buyers. Additionally, the assessment of the moderating effect of business group membership of buyers revealed that buyers who are members of business groups experience less positive influence of subcontractor supporting policies on internationalization. Based on these results, academic and practical implications are presented, and future research directions are discussed. \u0000","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115031440","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 : 2022-05-31DOI: 10.32956/kopoms.2022.33.2.243
Hee-Young Lim, K. Park
We study a firm that provides a customer co-design system to potential customers, with the customers then using this system to design their own products, resulting in customized products. Within the context of co-design businesses, one of the important factors is the scope of the system, meaning the choice variety customers can exercise their creativity during the design process. We build an analytical model that analyzes the impact of the scope on the demand and profits. Our model describes a situation in which potential customers attempt to use a co-design system, with some of them successfully purchasing their own products, and others abandoning the co-design tasks midway through, with these outcomes dependent on the scope and the heterogeneous customers. Our model also analyzes how product complexity and system investment influence the demand and profits, along with the scope of the system. The result represents the firm is better off providing as a wide scope as possible, regardless of both product complexity and system investment. However, the firm might experience a decrease in profits during widening the co-design scope. After making further efforts to widen the scope, the profit will then continue to increase. We also find the firm may gain higher profits as it offers a product with higher complexity, where higher levels of system investment may accelerate the profit increase.
{"title":"Analyzing the Customer Co-design System Considering Product Complexity and System Investment","authors":"Hee-Young Lim, K. Park","doi":"10.32956/kopoms.2022.33.2.243","DOIUrl":"https://doi.org/10.32956/kopoms.2022.33.2.243","url":null,"abstract":"We study a firm that provides a customer co-design system to potential customers, with the customers then using this system to design their own products, resulting in customized products. Within the context of co-design businesses, one of the important factors is the scope of the system, meaning the choice variety customers can exercise their creativity during the design process. We build an analytical model that analyzes the impact of the scope on the demand and profits. Our model describes a situation in which potential customers attempt to use a co-design system, with some of them successfully purchasing their own products, and others abandoning the co-design tasks midway through, with these outcomes dependent on the scope and the heterogeneous customers. Our model also analyzes how product complexity and system investment influence the demand and profits, along with the scope of the system. The result represents the firm is better off providing as a wide scope as possible, regardless of both product complexity and system investment. However, the firm might experience a decrease in profits during widening the co-design scope. After making further efforts to widen the scope, the profit will then continue to increase. We also find the firm may gain higher profits as it offers a product with higher complexity, where higher levels of system investment may accelerate the profit increase. \u0000","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123277525","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 : 2022-05-31DOI: 10.32956/kopoms.2022.33.2.201
Hojung Shin, SangJoong Lee
This study empirically investigates the retailers’ problems in allocating size-variants while procuring apparel items from the supplier. Owing to the limited resources and dynamic relationship among the supply chain participants, retailers may not secure sufficient order quantities, ultimately resulting in stockouts and service failures to consumers. A retailer must determine not only the appropriate order quantity of a product but also the proportion of the order quantity of each variant. Imbalance in allocation of variants may lead to a stockout at the variant level. In this study, we identify the causes of misallocations in size-variants of apparel products, considering that the demand for a certain apparel size is relatively stable. We hypothesize and evaluate the impacts of previous stockout frequency, seasonality, and stockout-based substitution. The empirical findings of this study indicate that more previous stockouts, summer and winter seasons, and demand substitution of larger-size variants for the variants sold-out aggravate misallocation problems. This is the first study to explain product variant level stockouts from the viewpoint of resource allocation. This study is meaningful for providing practical implications based on the findings.
{"title":"Misallocation of Size Variants in Apparel Product Purchases: Root Causes and Possible Remedies","authors":"Hojung Shin, SangJoong Lee","doi":"10.32956/kopoms.2022.33.2.201","DOIUrl":"https://doi.org/10.32956/kopoms.2022.33.2.201","url":null,"abstract":"This study empirically investigates the retailers’ problems in allocating size-variants while procuring apparel items from the supplier. Owing to the limited resources and dynamic relationship among the supply chain participants, retailers may not secure sufficient order quantities, ultimately resulting in stockouts and service failures to consumers. A retailer must determine not only the appropriate order quantity of a product but also the proportion of the order quantity of each variant. Imbalance in allocation of variants may lead to a stockout at the variant level. In this study, we identify the causes of misallocations in size-variants of apparel products, considering that the demand for a certain apparel size is relatively stable. We hypothesize and evaluate the impacts of previous stockout frequency, seasonality, and stockout-based substitution. The empirical findings of this study indicate that more previous stockouts, summer and winter seasons, and demand substitution of larger-size variants for the variants sold-out aggravate misallocation problems. This is the first study to explain product variant level stockouts from the viewpoint of resource allocation. This study is meaningful for providing practical implications based on the findings. \u0000","PeriodicalId":436415,"journal":{"name":"Korean Production and Operations Management Society","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115482249","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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