Innovative Quick Response Programs in Logistics and Supply Chain Management (eBook)

T. C. Edwin Cheng, Tsan-Ming Choi (Herausgeber)

eBook Download: PDF

2010
XV, 468 Seiten
Springer Berlin (Verlag)
978-3-642-04313-0 (ISBN)

Infos

Quick Response (QR) policy is a market-driven business strategy in which supply chain members work together to react quickly to volatile market demand. Nowadays, with advances in information technologies (such as RFID and ERP systems), new challenges and opportunities arise for the application of QR. This handbook explores QR extensively with a view to discovering innovative QR measures that can help tackle the observed and emerging challenges. The book is organized into four parts, which include chapters on analytical modeling and analyses, information technologies, cases, reviews, and applications. This handbook provides new analytical and empirical results with valuable insights, which will not only help supply chain agents to better understand the latest applications of QR in business, but also help practitioners and researchers to know how to improve the effectiveness of QR using innovative methods.

Inhalt

Preface 6
Contents 8
Part I Introduction 16
The Evolution of Quick Response Programs 17
1 Introduction 17
2 The Development of QR in the Apparel Industry 19
3 Implementation of QR 20
3.1 Use of Technology in QR 21
3.2 Aligning Operations to Support QR 23
3.3 Supply Chain Incentives Induced by QR 24
4 Examples of QR in the Apparel Industry 26
4.1 QR at Sport Obermeyer 26
4.2 QR at Zara 26
4.3 QR at Hennes and Mauritz (H& M)
4.4 QR at Benetton 28
4.5 QR at Adidas 28
4.6 QR at Hilton Hosiery 29
4.7 QR at Patrizia Pepe 30
4.8 QR at New Look 30
4.9 QR at World Company 31
5 Further Development of QR 31
5.1 QR Beyond the Apparel Industry 32
5.2 QR and Other Methods of Supply Chain Collaboration 33
References 35
Impact of Information Systems on Quick Response Programs 37
1 Introduction 37
2 Recent IT Developments and Their Impacts on QR 39
2.1 Electronic Data Interchange and Point of Sales 40
2.2 Radio Frequency Identification 41
2.3 Enterprise Resource Planning 42
2.4 Customer Relationship Management 44
2.5 Collaborative Planning, Forecasting, and Replenishment 45
3 How Should Companies Respond to Advances in IT? 45
4 The Existing Problems and Direction for Potential Future Research 46
5 Conclusions 47
References 48
Fast Fashion: Achieving Global Quick Response (GQR) in the Internationally Dispersed Clothing Industry 51
1 Introduction 51
2 Globalization in the Clothing Industry 52
2.1 Globalization and Mobility in the Clothing Industry 52
2.2 Buyer-Driven Supply Networks in Clothing 53
3 Global Quick Response 56
4 Achieving GQR 57
4.1 From Sample to Volume 57
4.2 Three Key Processes 59
4.2.1 The New Garment Design and Development Process 59
4.2.2 The Initial Volume Order 60
4.2.3 The Repeat and Replenishment Order Process 60
5 Enablers for GQR 61
5.1 Market Intelligence and Rapid New Product Introduction 63
5.2 Network Structure and Composition 64
5.3 Network Planning and Staged Postponement 65
5.4 Network Capability, Performance, and Health 67
6 Global Supply Chain Solutions: Examples from Practice 68
7 Conclusions 71
References 71
Part II Modelling and Analysis of QR Programmes 75
Procurement Flexibility under Price Uncertainty 76
1 Introduction 76
2 Literature Review 78
3 Model Development 79
3.1 Price Risk-sharing Agreement 80
3.2 Capacity Specification 81
4 A Single Adjustment Opportunity 82
4.1 The Optimal Policy 82
4.1.1 The Optimal Adjustment Strategy at Time 1 83
4.1.2 The Optimal Capacity Allocation Strategy at Time 0 84
4.2 Comparisons 86
4.2.1 Capacity Allocations 86
4.2.2 Service Performance and Adjustment Opportunities 89
5 Multiple Adjustments 91
5.1 Policy Structure 91
5.1.1 Dedicated Capacity Agreement 91
5.1.2 Overall Capacity Agreement 92
5.2 Discussions on Price Parameters 97
5.3 Overall Service Performance 99
6 Concluding Remarks 102
References 102
The Value of Information in Quick Response Supply Chains: An Assortment Planning View 104
1 Introduction 105
2 Decision Support Framework to Value Potential QR Strategies 109
3 Estimation and Optimisation Tools for Measuring the Value of Information 113
3.1 Uncertainty and Information 113
3.1.1 Case analysis to illustrate the above discussed complex uncertainty patterns 116
3.2 Demand 117
3.2.1 Demand Driver Parameters 118
3.2.2 Demand Distributions 121
3.3 Optimisation Models to Evaluate the Value of Information in Terms of Expected Assortment Profit and its Risk 122
3.3.1 The Vaagen–Wallace Assortment-Risk Model 122
3.3.2 The Vaagen–Wallace–Kaut Substitution Model 123
3.4 Measuring the Value of Information 126
3.4.1 Numerical Results 127
4 Concluding Remark 131
References 132
Improving Revenue Management: A Real Option Approach 135
1 Introduction 135
2 A General Problem Setting for Real Options with Time-varying Strike Prices 138
3 Profit Enhancement: An Example from the Airline Industry 138
3.1 Discounted Airfare with a European Option 140
3.2 Discounted Airfare with an American Option 141
3.3 Numerical Examples 144
4 Risk Management: An Example from the Energy Industry 145
4.1 Numerical Examples 148
5 Concluding Remarks and Further Implications 150
References 151
Supply Chain Scheduling under Quick Response 152
1 Introduction 152
2 Scheduling of Customer Orders for Quick Response 154
2.1 Scheduling of Customer Orders on Parallel Machines 155
2.2 Scheduling of Customer Orders on Dedicated Machines 156
3 Scheduling the Outsourcing for Quick Response 158
3.1 Scheduling on Single Outsourcing Machine 158
3.2 Scheduling on In-house and Outsourcing Machines 160
4 Supply Chain Scheduling for Quick Response 162
4.1 Batch and Delivery Scheduling in Supply Chain 162
4.2 Assembly Supply Chain System 165
5 Conclusion 167
References 168
Dynamic Pricing of Seasonal Product without Replenishment: A Discrete Time Analysis 170
1 Introduction 170
2 Control Model 172
2.1 Timing and Assumptions 172
2.2 Control Problem 173
3 Optimal Pricing Solutions 174
3.1 Discrete Time Approach 176
3.2 Optimal Discrete Time Solutions 176
3.2.1 Linear Demand 177
3.2.2 Exponential (Log-Linear) Demand 178
3.2.3 MNL Demand 178
3.2.4 MCI Demand 179
3.3 Pricing Guideline 180
4 Numerical Study 181
4.1 Accuracy 182
4.2 Value of Dynamic Pricing 184
4.2.1 When Inventory is Given 184
4.2.2 When Inventory is a Decision Variable 185
5 Extensions 187
6 Conclusions 188
References 190
Supplier Selection in Make-to-Order Manufacturing 192
1 Introduction 192
2 Literature Review 194
3 Model Description 196
3.1 Individual Supplier Performance 197
3.2 Multiple Suppliers Performance for a Particular Part 199
3.3 All Parts for a Custom Order 199
4 Frontier Portfolio Solutions 200
4.1 Part Portfolio Frontier Search 201
4.2 Order Portfolio Frontier Search 203
5 Committed Delivery Time Reduction (``Crashing'') 204
6 Numerical Example 205
6.1 Part Portfolio Frontier Search for Given Delivery Time 205
6.2 Order Portfolio Frontier Search for Given Delivery Time 206
6.3 Delivery Time Reduction 206
7 Numerical Example Discussion 207
8 Conclusions 210
References 211
Part III Enabling Technologies for QR Programmes 213
Enhancing Responsiveness for Mass Customization Strategies through the Use of Rapid Manufacturing Technologies 214
1 Introduction 214
2 Literature Background 217
2.1 Responsiveness in Mass Customization 217
2.2 Rapid Manufacturing as an enabler for mass customization 219
3 Model 222
3.1 Customer Choice 223
3.2 The MP Configuration 224
3.2.1 Evaluation model 225
3.2.2 Optimization 225
3.3 The MC Configuration 226
3.3.1 Evaluation 227
3.3.2 Optimization 227
4 Numerical Examples 227
4.1 Base example 227
4.2 The effect of increased production rate 230
4.3 The effect of increased production rate and production cost 230
5 Conclusion 232
References 233
Innovative Process in E-Commerce Fashion Supply Chains 236
1 Key Drivers Affecting Change 236
2 The Textiles and Apparel Supply Chain 238
2.1 E-Commerce in the Textiles Supply Chain 240
2.2 Adoption of E-Commerce Technologies 241
3 Adoption and Use of E-Commerce in the Fashion Supply Chain 243
3.1 Costs and Benefits 245
3.2 Challenges 246
4 Discussion 247
5 Conclusion 250
References 250
The Next Generation Demand Network in Quick Response Systems: Intelligent Products, Packet Switching and Dynamic Information 252
1 Introduction 252
2 The Role of Lead Times and Delivery Times in Demand Networks 255
3 RFID in Demand Networks 258
4 The Next Generation Demand Network and Quick Response Systems 259
4.1 Information Generation Three: IG3 260
4.2 Global Track and Trace 261
4.3 Intelligent Products 262
4.4 Multi-agent Systems (MAS) in Demand Networks 263
5 Circuit-Switching, Packet-Switching and QR Systems 265
5.1 Circuit-Switching vs. Packet-Switching 265
5.2 The Impact of Demand in QR Systems 265
5.3 Packet-Switching in the Demand Network 266
6 Conclusion 269
References 270
RFID's Applications in Quick Response Systems 273
1 Introduction 273
2 RFID Technology 274
3 RFID on Management 275
4 RFID Functionality 276
4.1 RFID Used to Reduce Inventory Shrinkage 276
4.2 RFID Used to Improve Inventory Record Accuracy 277
4.3 RFID Enhances Information Visibility 277
5 RFID Applications 277
5.1 RFID in Retailing-CPG 278
5.1.1 RFID Used in Smart Shelf 278
5.2 RFID in Retailing-Apparel 279
5.2.1 RFID Used with POS 279
5.2.2 RFID Used in Fitting Room 279
5.3 RFID in Food and Restaurant 280
5.4 RFID in Health Care 281
5.5 RFID in Logistic 281
5.6 Other RFID Applications 282
6 Conclusion 283
References 283
Enterprise Resource Planning Systems for the Textiles and Clothing Industry 287
1 Introduction 287
2 Literature Review 289
3 ERP Systems in Textiles and Clothing 290
3.1 Specific Cases1 290
3.2 Common Features and Modules 293
4 Enabling Technologies 297
5 Main Barriers 298
6 Critical Success Factors for Implementing ERP Systems 298
7 Conclusion and Future Developments 300
References 302
Simulation-based Optimization of Inventory Model with Products Substitution 304
1 Introduction 304
2 The Literature 305
3 The Model 308
3.1 Notations and Assumptions 308
3.2 The Profit Function 309
4 The Algorithm 311
5 Computational Study 315
6 Conclusion 317
References 318
Part IV Applications and Case Studies 320
Fast Fashion: Quantifying the Benefits 321
1 Introduction 321
2 Literature Review 322
3 Supply Flexibility Solutions 323
4 The Model 324
4.1 Markdowns Avoided by Supply Flexibility 325
4.2 Stockouts avoided by Supply Flexibility 327
4.3 Combining Both Effects: Improved Markdowns and Stockouts 328
5 Metric for Markdowns and Stockouts and Financial Performance 330
6 Data Analysis 331
6.1 The ``Zara Gap'' 331
6.2 Statistical Analysis 332
6.3 Effect of 15% Inventory Reduction 334
7 Conclusions 334
References 335
Divide and Conquer: From MTO to ATO/MTO 336
1 Introduction 336
1.1 Background 336
1.2 Challenges for SUGA 337
2 The Electronics Supply Chain for Healthcare Products 338
2.1 The Global Supply Chain 338
2.2 BTG Ordering Process 339
2.3 SUGA's Current Manufacturing Practice 340
3 Analysis of the Supply Chain 342
3.1 Product Characteristics 342
3.2 Consumer Demand Pattern 342
3.3 Bullwhip effect 343
4 Solution Strategy 345
4.1 Strategic Manufacturing (the methodology of ``divide'') 347
4.2 Operational Manufacturing (the art of ``conquer'') 348
4.2.1 ATO 348
4.2.2 MTO 349
4.2.3 Safety Stock for Long Lead-Time Materials and Forecast Error Measurement 350
4.2.4 Coordination Of Type I and II Products 352
4.3 Reducing the Bullwhip Effect 353
4.4 Performance Evaluation 353
5 Implementation and Impact 354
5.1 Current Status 354
5.2 Technology Innovations 355
6 Conclusion 357
References 359
Quick Response Practices in the Hong Kong Apparel Industry 360
1 Introduction 360
2 Literature Review 361
3 Current Practices in Hong Kong's Apparel Industry 363
3.1 The TAL Group (TAL)1 363
3.2 MOISELLE International Holdings Limited (Moiselle) 364
3.3 Magenta Wardrobe Fashion Associates Ltd (Magenta) 365
3.4 DIS2: The Buying Office for a European Fashion Brand ``M'' 366
3.5 RTL: A Hong Kong Branded Retailer in Ladies' Wear 367
3.6 MFR: A Hong Kong ``Small-Medium Enterprise'' (SME) Manufacturer 368
3.7 Summary of the Review of Current QR Practices 369
4 Managerial Implications and Conclusions 370
References 371
Efficient Response Systems with RFID Technology: Cases in China 373
1 Introduction 373
2 Literature Review 375
3 Warehouse Management in Tobacco Industry 377
3.1 Company Background 378
3.2 Technology Solutions 378
3.3 Benefits 380
4 Home–School Communications System in Primary School 381
4.1 Background of the Pilot Primary School 382
4.2 Solutions 383
4.3 Discussions 384
5 Extensions of RFID Application for Efficient Response in Other Ways 384
5.1 RFID–DWMS in the Whole Tobacco Supply Chain 384
5.2 RFID Applications in Electronic Toll Collection System 385
6 Conclusion 386
References 387
The Emergence of the Fast Fashion Business Model and Imposed Quick Response Challenges for Chinese Fabric Manufacturers 390
1 Introduction 391
1.1 Fast Fashion 392
1.1.1 Zara's Business Model 393
1.2 Retail Buying Cycle: Traditional vs. Fast Fashion 394
1.3 China's Competitive Advantages for Fast Fashion 396
1.3.1 Business Climate and Infrastructure 397
1.3.2 Proximity to Major Markets 397
1.3.3 Market Accessibility 398
1.3.4 Labor and Management 398
1.3.5 Raw Material Inputs: Access to Quality and Cost-Competitive Fabric Production 398
1.3.6 Vertical Integration of Industry Service: Quality and On-Time Delivery 399
1.4 Supplier Management 399
1.5 Supplier Dynamic Capabilities and Innovation 402
2 Methodology 404
2.1 Case Research Design 405
2.2 Number of Cases 406
2.3 Modified Convergent Interview 406
2.4 Design of Questionnaire Survey 408
2.5 Data Analysis and Model Confirmation 408
3 Theoretical Framework and Research Issues 409
3.1 Research Issue 1: Dynamic Capabilities 409
3.2 Research Issue 2: Firm Strategy 410
3.3 Research Issue 3: Capability Development 410
3.4 Research Issue 4: Supply Chain Performance 411
4 Case Research Procedure 412
4.1 Profile of Companies Surveyed 412
4.2 Interview Location and Conduct 412
4.3 Interview Observations 415
5 Results and Analysis 415
5.1 Examination of Supplier Dynamic Capabilities 416
6 Discussion and Managerial Implications 419
7 Limitations and Future Avenues of Research 419
8 Conclusion 420
References 421
Innovative Mass Customization in the Fashion Industry 426
1 Introduction 426
2 Literature Review 428
2.1 Mass Customization: Background 428
2.2 Mass Customization and Supply Chain Management 429
2.3 Modularity 431
2.4 Customer Involvement 432
2.5 Technology 433
2.6 Classifications of Mass Customization 434
2.7 Performance Measures 436
2.8 Challenges of Mass Customization 436
2.8.1 External Complexity 437
2.8.2 Internal Complexity 437
3 MC in the Fashion Industry 438
4 Traditional MC and Innovative MC 442
4.1 Traditional Mass Customization 442
4.1.1 Levi's 442
4.1.2 GS Company (http://www.blablabra.com/)1 443
4.2 Innovative Mass Customization 444
4.2.1 Brooks Brothers 445
4.2.2 Lands' End 446
4.2.3 Nike 447
4.3 Comparison Between Traditional and Innovative Mass Customization 448
4.4 Remarks: New Models 448
5 Recommendations and Conclusion 450
References 453
Improving Allocation of Inventory for Quick Response to Customer Orders: A Case Study 458
1 Introduction 458
2 Existing Inventory Allocation System 460
3 Problems with the Existing Allocation Scheme 461
4 Analysis of the Problems 461
5 New Allocation Scheme 462
6 Testing of the New Allocation Scheme 463
7 On-Site Programming, Testing and Implementation 464
8 Conclusion 466
References 466
Index 467

Produkt-Details

• Erscheint lt. Verlag: 11.3.2010
• Reihe/Serie: International Handbooks on Information Systems
• Reihe/Serie: International Handbooks on Information Systems
• Zusatzinfo: XV, 468 p. 72 illus.
• Verlagsort: Berlin
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Logistik / Produktion
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Schlagworte: E-Commerce • Efficient Consumer Response • Enterprise Resource Planning • information system • information systems • linear optimization • logistics • Modeling • Optimization • Production and Operations Management • Quick Response • Radio-Frequency Identification (RFID) • Scheduling • Supply Chain Management • Supply chains
• ISBN-10: 3-642-04313-5 / 3642043135
• ISBN-13: 978-3-642-04313-0 / 9783642043130