Inventory diagnosis for flow improvement—A design science approach

Land, Martin; Thürer, Matthias; Stevenson, Mark; Fredendall, Lawrence D.; Scholten, Kirstin

doi:10.1002/joom.1133

Cited by 13 publications

(2 citation statements)

References 76 publications

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“…Second, in terms of management implications, managers of firms need to be fully aware of the massive shock from the COVID-19 pandemic. Both supply chains and inventories (Land et al, 2021) must be adjusted as the market environment changes. In service industries, in particular, innovative measures need to be taken.…”

Section: Discussionmentioning

confidence: 99%

Estimating the Real Shock to the Economy From Covid-19: The Example of Electricity Use in China

Liu

Huang

2022

Technological and Economic Development of Economy

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Quantifying the shock to the economy from the COVID-19 pandemic is difficult. Although this shock is easily linked to financial markets as a sort of monetary shock, few studies have been done on its effect on the real economy. This study takes a particular economic perspective, focusing on electricity uses in various sectors of the economy. We propose a novel method for comparing electricity use in 2019Q1 and 2020Q1, based on which we derive the degree of the real shock to some important economic sectors from COVID-19. In our theoretical framework, demand for energy and its influencing factors are related to the total scale of the economy, i.e., the gross domestic product. Using suitable empirical methods, we obtain certain marginal effects and then calculate the corresponding ratio as the real shock from COVID-19. The ratio between these marginal effects reveals the need for a balance between stocks and the corresponding differences in the economy. In our cases, the electricity use in various economic sectors plays a role in both stocks and the differences. We find that, although manufacturing and consumption are affected, the services are more vulnerable to the shock from the COVID-19 pandemic. Our findings offer implications for policymakers.

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Section: Discussionmentioning

confidence: 99%

Estimating the Real Shock to the Economy From Covid-19: The Example of Electricity Use in China

Liu

Huang

2022

Technological and Economic Development of Economy

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“…While the lead time syndrome is a behavioral phenomenon that has been known for decades, it is likely to become even more important in the era of smart manufacturing due to new technologies that enable the continuous tracking and tracing of throughput and transportation times (Gaukler et al, 2008). Managerial biases are not resolved via the use of new technology, rather they can easily be embedded into new technologies (Land et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Dynamic planned lead times in production planning and control systems: does the lead time syndrome matter?

Thürer

Fernandes

Haeussler

et al. 2022

International Journal of Production Research

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Many companies in practice want to dynamically adjust planned lead times in their production planning and control systems in response to demand fluctuations. But for decades it has been recognized that this can lead to escalating planned lead times and realized throughput times.Authors have highlighted the negative impact of this "lead time syndrome", especially in the context of Material Requirements Planning systems, prompting the development of alternative concepts intended to overcome its vicious cycle, such as Workload Control. Yet some authors have shown that increasing planned lead times has advantagesit can improve end-item service levels. To resolve this paradox, we conjecture that the effects of the lead time syndrome are limited when demand is independent of internally planned lead times, such as in make-toorder companies, and subsequently use simulation to prove this conjecture. We show that although dynamic planned lead times have a detrimental effect on performance in make-toorder systems, it is not an increase in planned lead times that leads to a performance loss. Rather, it is the decrease of lead times in low load periods that increases workloads in upcoming periods of high load. This questions the use of upper bounds (WIP-cap) in these contexts.

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Material flow control in make-to-stock production systems: an assessment of order generation, order release and production authorization by simulation

Thürer,

Fernandes,

Lödding

et al. 2024

Flex Serv Manuf J

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Material flow control (MFC) is a key element of production planning and control. The literature typically categorizes different MFC methods according to how MFC is realized. This distinction overlooks that MFC decisions can be subdivided into three independent tasks that are executed as orders progress through the system: (i) order generation, (ii) order release, and (iii) production authorization. MFC methods are typically designed for only one of these three tasks, which leaves a large part of the order flow uncontrolled. This study therefore not only provides a new categorization of MFC methods, but also argues for the simultaneous application (or the combining) of three different MFC methods for order generation, order release, and production authorization. To support this argument, the performance effects of an integrated MFC approach are evaluated. Findings show that each individual MFC method impacts different performance metrics, which can be explained by the presence of a hierarchy of workloads, where each workload level constrains the succeeding hierarchical level. Each MFC method has a main impact on a different workload. This has important implications for the design of MFC methods and extends recent literature on hierarchical production planning and control systems.

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Inventory diagnosis for flow improvement—A design science approach

Cited by 13 publications

References 76 publications

Estimating the Real Shock to the Economy From Covid-19: The Example of Electricity Use in China

Estimating the Real Shock to the Economy From Covid-19: The Example of Electricity Use in China

Dynamic planned lead times in production planning and control systems: does the lead time syndrome matter?

Material flow control in make-to-stock production systems: an assessment of order generation, order release and production authorization by simulation

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