Heuristic method on solving an inventory model for products with optional components under stochastic payment and budget constraints

Wang, Tai-Yue; Hu, Jui-Ming

doi:10.1016/j.eswa.2009.08.017

Cited by 11 publications

(12 citation statements)

References 23 publications

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“…On the other hand, under budget constraints, managers will be more devoted to improving the IS information quality, including high accuracy, reliability and relevance, which in turn improve process innovation and product innovation. These interpretations are consistent with the arguments of previous studies such as Nohria and Gulati (1997), Dunk (2007), Wang and Hu (2010) and Ahmadizar and Soltanpanah (2011). The positive link between IS information quality and ICC is in line with the view of Todtling et al (2009) who believed that good information quality facilitates innovation.…”

Section: Discussionsupporting

confidence: 92%

“…A low level of budget slack would encourage them to focus on the effective use of IS information, which is critical to process control and product design (Nohria and Gulati, 1997;Yang et al, 2009). Previous information system research has suggested that a system has better stability and accuracy when the budget is constrained (Wang and Hu, 2010;Ahmadizar and Soltanpanah, 2011). Thus, this study contended that the four factors of ICC constitute an IT manufacturing firm's innovation capability, and the ICC will demonstrate a greater capacity when the level of budget slack is lower and the degrees of IS information quality, process innovation and product innovation are all higher.…”

Section: Introductionmentioning

confidence: 99%

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Innovation capability configuration and its influence on the relationship between perceived innovation requirement and organizational performance

Cheng

Chung

et al. 2018

JMTM

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Purpose When the management of an information technology (IT) manufacturing firm perceives a need for innovation due to any threat in the external environment, it will be prompted to use organizational resources to support innovation and improve organizational performance through the implementation of the innovation. The purpose of this paper is to explore whether an IT manufacturing firm’s budget slack, information quality of information system (IS), process innovation and product innovation would interact to collectively form an innovation capacity, which is termed “innovation capability configuration (ICC)”, and whether ICC mediates the relationship between perceived innovation requirement and organizational performance. Design/methodology/approach To answer these questions, a structural equation model was built and a questionnaire survey was conducted to collect data from research and development and production managers of IT manufacturing companies listed on the Taiwan Stock Exchange and Over-The-Counter markets. Findings The results showed that budget slack, IS information quality, process innovation and product innovation are all significantly related to ICC, in which high-quality information and low level of budget slack are the key factors that underpin the innovation capacity. In addition, ICC has a full mediation effect, that is, perceived innovation requirement positively influences ICC, which, in turn, improves organizational performance. Research limitations/implications Because all items in a questionnaire were answered by a manager, the common method variance might exist in this study. In addition, the effective recovery rate of the questionnaire was not high due to which the non-response bias might occur. Following the research limitations, several future research recommendations are proposed. Practical implications This study offers managerial implications for the development of an IT manufacturing firm’s innovation strategy and structure to smooth the implementation of innovation in the severe environment. Originality/value The study is the first attempt to integrate the four elements clearly illustrating the ICC, which is a more complete innovation strategy, thus contributing to improve the past fragmental studies and clarify some controversial points existing in the extant innovation research.

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Section: Discussionsupporting

confidence: 92%

Section: Introductionmentioning

confidence: 99%

Innovation capability configuration and its influence on the relationship between perceived innovation requirement and organizational performance

Cheng

Chung

et al. 2018

JMTM

View full text Add to dashboard Cite

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“…The budgetary constraint, in turn, includes the service costs of the vanilla box and optional components. A detailed account of the model development can be found in [15,16].…”

Section: B Model Formulation and Set Of Equationsmentioning

confidence: 99%

An efficient method for solving a correlated multi-item inventory system

Lee

2018

Operations Research Perspectives

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We propose an efficient method of finding an optimal solution for a multi-item continuous review inventory model in which a bivariate Gaussian probability distribution represents a correlation between the demands of different items. By utilizing appropriate normalizations of the demands, we show that the normalized demands are uncorrelated. Furthermore, the set of equations coupled with different items can be decoupled in such a way that the order quantity and reorder point for each item can be evaluated independently from those of the other. As a result, in contrast to conventional methods, the solution procedure for the proposed method can be much simpler and more accurate without any approximation. To demonstrate the advantage of the proposed method, we present a solution scheme for a multi-item continuous review inventory model in which the demand of optional components depend on that of a "vanilla box," representing the customer's stochastic demand, under stochastic payment and budget constraints. We also perform a sensitivity analysis to investigate the dependence of order quantities and reorder points on the correlation coefficient. * Electronic address: clee@kongju.ac.kr

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“…They incorporated the service costs into the budget constraint in a multi-item inventory control system and proposed two heuristic procedures to solve the model. They [4] presented a multi-item (Q,r) model for the correlative demands between the necessary components and the optional components. The maximum investment in the inventory was assumed to be random.…”

Section: Literature Reviewmentioning

confidence: 99%

“…They showed that the standard cost method for making the outsourcing decision is inferior to the CPCM. Balakrishnan & Cheng [12] used a spreadsheet-based optimizer for more 4 effective implementation of make-or-buy decisions. This method was not also appropriate for the large-sized instances.…”

Section: Literature Reviewmentioning

confidence: 99%

Dynamic TOC-based approach for planning and control of accessories in MTO environments

Keyvani

Lotfi

2018

Scientia Iranica

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In make-to-order systems, customers expect to have more freedom to choose the accessories. But demand variations and internal disorders induce some uncertainties. Hence, a different inventory system is needed for such items that dynamically manage those variations. In this paper, a dynamic approach based on the theory of constraints is proposed for inventory planning and control of accessories. First, the risk of processing time variation is balanced while keeping cycle time balancing. Second, the ribbons of buffer control charts are determined by a buffer planning model in which a multi-criteria ABC analysis is used to apply different customer service levels.To detect demand variations and monitor the buffer, trend of consumption in each monitoring window is carefully traced. Also, simulation-based procedures are recommended to update control ribbons. Comparing the performance of proposed approach to common methods using the data of an automobile company as well as several random test problems confirms that it can significantly reduce the costs and improve the efficiency of inventory system.

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Heuristic method on solving an inventory model for products with optional components under stochastic payment and budget constraints

Cited by 11 publications

References 23 publications

Innovation capability configuration and its influence on the relationship between perceived innovation requirement and organizational performance

Innovation capability configuration and its influence on the relationship between perceived innovation requirement and organizational performance

An efficient method for solving a correlated multi-item inventory system

Dynamic TOC-based approach for planning and control of accessories in MTO environments

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