The Impact of Demand Uncertainty and Configuration Capacity on Customer Service Performance in a Configure‐to‐order Environment

Nyaga, Gilbert N.; Closs, David J.; Rodrigues, Alexandre; Calantone, Roger J.

doi:10.1002/j.2158-1592.2007.tb00059.x

Cited by 18 publications

(12 citation statements)

References 25 publications

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“…The hockey stick sales or hockey stick phenomenon, a sales spike at the end of the sales period, is an important characteristics of many markets in Brazil but not exclusive to this country. There are references in the literature to companies in highly diverse industries and countries suffering from the effects of the hockey stick phenomenon (Bradley & Arntzen, 1999;Chen, 2000;Hines, Holweg, & Sullivan, 2000;Hoole, 2005;Lee, Padmanabhan, & Whang, 1997a;Neale & Willems, 2009;Nyaga, Closs, Rodrigues, & Calantone, 2007;Oyer, 1998;Shaw, 1996;Singer, Donoso, & Konstantinidis, 2009;Slone, Mentzer, & Dittmann, 2007;Sohoni, Bassamboo, Chopra, Mohan, & Sendil, 2010;Stank, Dittmann, & Autry, 2011;Sterman, 2006;Umble & Srikanth, 1990;Villegas & Smith, 2006;Zotteri, 2013).…”

Section: Introductionmentioning

confidence: 99%

“…They advocate a redesign of sales force and dealer bonuses. Nyaga, Closs, Rodrigues and Calantone (2007) study the effects of hockey-stick sales, what he calls demand skew, in a configure-to-order environment (CTO) by using a simulation model. They argue that in a CTO environment the policies proposed by Bradley and Arntzen (1999) are not feasible because inventory build-up is not a possibility.…”

Section: Introductionmentioning

confidence: 99%

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Hockey Stick Phenomenon: Supply Chain Management Challenge in Brazil

Sanches

Lima

2014

BAR, Braz. Adm. Rev.

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The objective of this study is to investigate a phenomenon that occurs in Brazil, specifically the spike in demand at the end of the sales period, known as the hockey stick phenomenon. This analysis will encompass the causes as well as the impacts of this phenomenon, in a way that allows alternative policies to be evaluated. Data was collected from a Brazilian branch of a large multinational in the non-durable consumer goods industry and in semi-structured interviews conducted face-to-face with executives of 26 clients. The data was used to generate a continuous simulation model based on the methods of systems dynamics. The findings showed that the phenomenon negatively impacted the manufacturer's financial performance in the long term and indicated required changes necessary to remediate the phenomenon. This is an empirical study on the hockey stick phenomenon, a problem that affects diverse companies in Brazil. The study showed that companies should not assume the hockey stick phenomenon to be an exogenous problem; it showed that there are policies able to improve financial performance; and it provided ideas regarding ways to carry out the change process.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Hockey Stick Phenomenon: Supply Chain Management Challenge in Brazil

Sanches

Lima

2014

BAR, Braz. Adm. Rev.

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“…Nyaga et al. () specifically examined the impact of demand variability, demand skew and configuration capacity on customer service in a “configure‐to‐order” business environment. The authors were able to demonstrate that those factors impacted firm performance.…”

Section: Journal Of Business Logistics: 2006–2010mentioning

confidence: 99%

“…Sometimes we were prescient; sometimes we missed the mark (see Table 2). To invite new perspectives and be more inclusive, we launched a series of special topic forums Nyaga et al (2007) in "The Impact of Demand Uncertainty and Configuration Capacity on Customer Service Performance in a Configure-to-Order Environment," examined a traditional topic that has been important since the founding of JBL. Since the publication of Customer Service: Meaning and Measurement by LaLonde and Zinszer (1976), many researchers had examined various aspects of customer service within distribution and logistics.…”

Section: An Expanded Communitymentioning

confidence: 99%

Reflections on 40 Years of the Journal of Business Logistics: From the Editors

Goldsby

Zinn

Closs

et al. 2019

J of Business Logistics

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This editorial embodies a series of essays from the current and past editors of the Journal of Business Logistics in marking the 40th anniversary of the journal. The compendium is intended to illustrate the evolution in logistics thought and practice as well as the journal's role in documenting and advancing the field. Key trends are identified in each era. Further, each editor expresses opinions of the current and future state of the discipline. This review reflects on the evolution of the Journal of Business Logistics and envisions the futures of the logistics field and supply chain discipline.

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“…Kaminsky and Swaminathan (2004) provide a numerical study using the heuristics developed based on a capacitated production model to show the impact of seasonality on demand and availability of information updates. Using a simulation-based approach, Nyaga et al (2007) examine the interaction effect of demand skew, demand variability, and configuration capacity on customer service level in a CTO environment. In industries, the capability for constrained planning has been incorporated in some of the advanced supply chain solutions.…”

Section: Literature Reviewmentioning

confidence: 99%

A Production–Inventory Model for a Push–Pull Manufacturing System with Capacity and Service Level Constraints

Cheng

Ettl²,

Lu³

et al. 2012

Production and Operations Management

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We study a hybrid push–pull production system with a two‐stage manufacturing process, which builds and stocks tested components for just‐in‐time configuration of the final product when a specific customer order is received. The first production stage (fabrication) is a push process where parts are replenished, tested, and assembled into components according to product‐level build plans. The component inventory is kept in stock ready for the final assembly of the end products. The second production stage (fulfillment) is a pull‐based assemble‐to‐order process where the final assembly process is initiated when a customer order is received and no finished goods inventory is kept for end products. One important planning issue is to find the right trade‐off between capacity utilization and inventory cost reduction that strives to meet the quarter‐end peak demand. We present a nonlinear optimization model to minimize the total inventory cost subject to the service level constraints and the production capacity constraints. This results in a convex program with linear constraints. An efficient algorithm using decomposition is developed for solving the nonlinear optimization problem. Numerical results are presented to show the performance improvements achieved by the optimized solutions along with managerial insights provided.

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The Impact of Demand Uncertainty and Configuration Capacity on Customer Service Performance in a Configure‐to‐order Environment

Cited by 18 publications

References 25 publications

Hockey Stick Phenomenon: Supply Chain Management Challenge in Brazil

Hockey Stick Phenomenon: Supply Chain Management Challenge in Brazil

Reflections on 40 Years of the Journal of Business Logistics: From the Editors

A Production–Inventory Model for a Push–Pull Manufacturing System with Capacity and Service Level Constraints

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