Forecast quality improvement with Action Research: A success story at PharmaCo

There is a gap in the forecasting research surrounding the theory of integrating and improving forecasting in practice. The number of academically affiliated consultancies and knowledge transfer projects that there are around, due to a need for improvements in forecast quality, would suggest that many interventions and actions are taking place. However, the problems that surround practitioner understanding, learning and usage are rarely documented. This article takes the first step toward trying to rectify this situation by using the specific case study of a fully engaged company. A successful action research intervention in the Production Planning and Control work unit improved the use and understanding of the forecast function, contributing to substantial savings, enhanced communication and improved working practices.     

Developing design principles for the digitalisation of purchasing and supply management

This paper develops an approach to evaluating designs for digitalisation interventions in purchasing and supply management (PSM), and identifies some fundamental design principles for such interventions. A set of advanced technologies for digitalisation and a theory-based set of seven value drivers for PSM are identified for the proposed grid to facilitate the design of applications and interventions for digitalising PSM. The grid relates the digital technologies to the PSM value drivers in a matrix-like manner, allowing the structured consideration of the space defined by these two dimensions. The proposed approach to the strategic evolution of digitalisation in PSM is tested and its utility is demonstrated in analyses of practitioner literature and multiple case-study-based perspectives on PSM digitalisation. Two fundamental design principles relating to the use of the grid, or to the filling of its space, are set out, thus the research provides new theoretical perspectives on the design of advanced forms of PSM digitalisation. The proposed grid may be used in application design, communicating current and future states of PSM digitalisation to stakeholders, and specifically in developing a future-oriented strategy with a digitalization element for the PSM function.     

Leverage effect on stochastic volatility for option pricing in Hong Kong: A simulation and empirical study

This paper explores the importance of incorporating the financial leverage effect in the stochastic volatility models when pricing options. For the illustrative purpose, we first conduct the simulation experiment by using the Markov Chain Monte Carlo (MCMC) sampling method. We then make an empirical analysis by applying the volatility models to the real return data of the Hang Seng index during the period from January 1, 2013 to December 31, 2017. Our results highlight the accuracy of the stochastic volatility models with leverage in option pricing when leverage is high. In addition, the leverage effect becomes more significant as the maturity of options increases. Moreover, leverage affects the pricing of in-the-money options more than that of at-the-money and out-of-money options. Our study is therefore useful for both asset pricing and portfolio investment in the Hong Kong market where volatility is an inherent nature of the economy.     

Implementing reverse e-auctions: A learning process

Reverse e-auctions, which enable suppliers to compete on-line in real-time, are changing the way organizations select their suppliers. We explore how five large firms in different industries learned to use e-auctions, and how e-auctions were integrated into their purchasing processes. To successfully implement e-auctions, organizations should: (1) build e-auction competencies; (2) organize for knowledge management; (3) create a holistic sourcing process; (4) focus on the total cost of ownership; and (5) experiment with e-auction designs. Key observations are drawn from the case studies, and implications for supply managers are presented.     

Setting operating policies for supply hubs

This paper deals with the joint management of operations at the supply hub for the customer and the upstream supplier. Different operating conditions are considered, namely, backordering, minimum and maximum specified inventory levels. Some analytical insights on better managing suppliers operating under a vendor managed inventory program are presented. Essentially, we show that the penalty cost imposed on over- and under-stocking, and the min–max policy for hub inventory reside in the power of the hub operator. The relationship between supply hub policy and performance measures is quite complex and non-linear in nature. We suggest a structured hierarchical approach which can help supply hub in achieving balance between various parties involved in chain. A numerical example and an algorithm are included to highlight this result.     

THE EFFECT OF INVESTMENT IN INTERORGANIZATIONAL INFORMATION TECHNOLOGY IN A RETAIL SUPPLY CHAIN

The primary purpose of this research was to investigate the effect of investment in information technology in a supply chain. The results of that investigation are presented by focusing on an empirically tested supply chain relationship model containing both behavioral and operational constructs. The four behavioral constructs represented in the model are relationship trust, relationship commitment, relationship dependence, and long‐term relationship orientation. The four operational constructs represented in the model are retailer investment in interorganizational information technology, perceived supplier investment in interorganizational information technology, logistics efficiency, and logistics effectiveness. Among other findings, the results of the investigation found that perceived supplier investment in interorganizational information technology has a significant and positive effect on logistics efficiency.     

AN EVALUATION OF PROCESS‐ORIENTED SUPPLY CHAIN MANAGEMENT FRAMEWORKS

Supply chain management (SCM) is implemented by integrating corporate functions using business processes within and across companies. Several process‐oriented frameworks for SCM have been proposed but only two of these provide sufficient detail to enable implementation. We evaluate the Supply‐Chain Operations Reference (SCOR) framework and The Global Supply Chain Forum (GSCF) framework using four criteria and identify their relative strengths and weaknesses.     

Regulating B2B online reverse auctions through voluntary codes of conduct

In response to real and perceived abuse by market makers, buyers, and sellers, some industry trade groups representing suppliers have developed voluntary codes of conduct, white papers, and other forms of guidance for online reverse auction participants. The intent of these guidelines is to improve both the reverse auction process and relationships between buyers and sellers. This paper examines the rationale for creating guidelines and codes of conduct, and examines their efficacy in regulating reverse auctions to achieve improved outcomes for market makers, buyers, and sellers. Data from primary and related secondary sources indicate that industry-specific codes of conduct and guidelines have not had a favorable impact.     

CCM在公路工程项目进度管理中的实证分析

本文论述了CCM技术以及项目进度延迟的原因。并采用基于TOC的CCM技术,对公路工程 项目进度管理进行了实证分析。通过分析结果与传统方法的比较,论证CCM技术在公路工程项目进度管 理中的实用价值。     

Environmental uncertainty, supply chain relationship quality and performance

Environmental uncertainty is a fact of life in today's supply chains. In this paper we develop a model of environmental uncertainty, supply chain (SC) relationship quality and SC performance. We use data from the electronics sector in Ireland to test our model. Our results provide mixed support for the model, with the moderating role of both demand and supply uncertainty being supported, but technological uncertainty not supported. We reflect on these findings and suggest a research agenda based on our results.