International Journal of Physical Distribution & Logistics Management

Craig R. Carter; Thomas E. Hendrick

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710182608

Firms have shifted their competitive emphasis from quality in the 1980s to time in the 1990s. While initially, managers concentrated on reducing manufacturing cycle time, recently managers and researchers have come to realize that manufacturing accounts for only a small proportion of total cycle time. Managers and academics have also recently realized that purchasing and supply management can play a critical role in reducing total cycle times. A time delay made at this early stage will ripple throughout the remainder of the organization as well as the entire supply chain. Combines the findings from practitioner interviews, existing time‐based research, and the literature from organizational behaviour to develop a grounded model of organizational factors that impact the adoption of time‐based strategies and tactics by a firm’s purchasing and supply management functions. Uses a survey instrument to empirically complement the statistical findings. Discusses the results and implications from the model testing and suggests avenues for future research.

Michael A. Haughton; Alan J. Stenger

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710182635

Maintaining efficiency in despatching goods from a depot to geographically dispersed customers may require management at the depot to adjust its delivery routes daily if these customers’ demands fluctuate from day to day. One type of adjustment is to give drivers daily “skip lists” instructing them not to visit customers who have indicated that they do not need delivery on the day in question. This adjustment, which is appropriately referred to as semi‐variable routes, increases the depot’s outbound logistics productivity by eliminating some unnecessary travelling. Using extensive experimental data, develops a regression model that efficiently and accurately estimates this productivity increase, and illustrates how spreadsheets can be used as a decision support medium for using the model in pedagogical and applied settings. Confirms the model’s validity by standard model validation tests as well as by comparison with an existing model from previous research.

Alain Halley; Alice Guilhon

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710182644

Progressively acknowledged as a systemic function and an organizational integration factor, logistics is slowly becoming a major strategic issue for organizations. Small‐ and medium‐sized enterprises (SMEs), defined as enterprises with fewer than 500 employees and management centralized mainly in the person of the owner‐manager, who has a high degree of control over activities, specifically seek to improve their performance and efficiency through logistics. Suggests that logistics appears to play two roles in SMEs: an adaptation role, helping the enterprise adapt to changes in external conditions, and an integration role at the various organizational levels. In fact, clearly observes, a growing need for logistics and the heterogeneity of the strategic behaviours indicates that logistics (as a performance factor) should be developed according to the distinctive advantages of the SMEs concerned ‐ for example, the technological and organizational structure or the management style of the owner‐manager. Logistics is an overall concern in small enterprise strategy. It evolves from the transformation of structure, behaviours and internal expertise towards efficiency and effectiveness zones for very integrated SMEs, and efficiency zones for the others.

Farzaneh Fazel

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710182680

Presents a mathematical model to assist companies in their decision to switch from the economic order quantity (EOQ) to the just‐in‐time (JIT) purchasing policy. Determines an upper limit for the JIT purchase price of an item below which the manufacturer will be better off using JIT purchasing. Also determines the annual demand level at which the costs of EOQ and JIT purchasing will be equal (the indifference point). For demand levels above this indifference point EOQ is the less costly method while JIT is preferable for demand levels below this point. The model also predicts that JIT will be preferred for inventory items with higher purchase price, holding costs, or ordering cost.