The extreme demand volatility caused by corona virus 2019 (COVID-19) overwhelmed most preemptive measures enacted by firms to mitigate disruptions in their supply chains. This led to the rapid implementation of reactive measures to provide business continuity. The operations and supply chain management literature has grouped these reactive techniques into those that involve the reconfiguration of firm resources and those that involve changes to its decision-making processes. Unfortunately, little of this work has empirically assessed the efficacy of individual reactive techniques on business continuity after the onset of a disruption such as COVID-19. The research reported in this paper addresses this gap through an experimental design and discreteevent simulation to empirically test the impact on firm outcomes of resource reconfiguration techniques versus those related to adaptive decision-making processes. Data from a canned foods manufacturer is used to populate the simulation and isolate the impact of these reactive changes implemented in March 2020 at the beginning of the COVID-19 disruption on the attainment of business continuity in the 3 months following the COVID-19 disruption. The results show that for this company, decision-making changes-specifically changes to planning process cadence and time horizon-had more impact on business continuity than those focused on resource reconfiguration (increasing capacity through stock keeping unit (SKU) prioritization and increasing the number of shifts). These results, in addition to qualitative data collected from company executives to provide context for the modeling results, are used to provide insights that are generalizable to many firms.
PurposeThe purpose of this research is to extend existing knowledge of supply chain agility by identifying the interrelationships among key elements of agility that may impact customer performance improvement when conditions of demand and supply vary from the core assumptions used to design supply chain networks.Design/methodology/approachThe research employs the principles of middle range theorizing (Merton, 1968) to incorporate observations from field interviews and data collected from executives, managers, and analysts from six global manufacturing firms across a range of industries to form research propositions about the nature of relationships among cognitive agility dimensions, antecedent impediments to cognitive agility, and the relationships between cognitive and physical agility to improve performance that can later be subjected to deductive testing.FindingsThe supply chain designs used by the participating firms to deliver value for core products were not sufficiently agile to meet desired customer performance levels when certain supply or demand conditions varied significantly from the norm. In collaboration with partner firms, the findings suggest that improving cognitive abilities to see, think and act by deploying information-based tactical initiatives in planning, inventory positioning, and supplier lead time performance monitoring enable improved physical agility that enable a firm to respond to changes swiftly and flexibly in the demand and supply environment. Importantly, the findings also suggest that the dimensions of cognitive agility are correlated and are formative elements of the latent construct of cognitive agility, which is antecedent to physical agility.Research limitations/implicationsThese findings are limited in scope to the six companies that participated in this research. Future explorations should generalize to a broader population of firms and conditions. The results do provide evidence of the relationships between the dimensions of agility that are both a contribution and should guide future research on the subject.Practical implicationsFrom a managerial standpoint, the research findings provide insight into how firms might manage agility to improve performance when demand and supply conditions vary from those for which the core supply chain was originally designed. The findings suggest that improving the ability to capture, process, and disseminate information, i.e. cognitive agility dimensions of alertness, accessibility, and decisiveness, facilitates improved information-based initiatives in planning, inventory positioning, and supplier lead time performance monitoring, which in turn enables improved physical initiatives to swiftly and flexibly respond to changes in the demand and supply environment. Such improvements ultimately result in heightened customer service and inventory performance.Originality/valuePrevious research is mute regarding the interrelationships among the identified dimensions of supply chain agility, specifically those considered to be “cognitive” elements and those that involve physical actions. The finding suggesting that the dimensions of cognitive agility are correlated and are formative elements of the latent construct of cognitive agility provides an important theoretical insight that contributes to enhanced understanding of the nature of supply chain agility to foster future quantitative explorations to better understand the phenomena.
Diet influences health and poor diets drive up healthcare costs for individuals and society as a whole. Multiple governmental programs in the US have aimed to educate citizens about diet choices, resulting in documented successes, as well as, unintended consequences such as increased food waste. Here we examine some of the relationships between healthy diets, food prices, and wealth by drawing parallels between the diffusion of technological innovation and healthy food diets. We introduce a simple modeling framework to estimate the adoption rates of healthy diets based on income and food prices, and describe the implications of the modeling results for the food industry and for government.
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