International Journal of Physical Distribution & Logistics Management

Zhang Lihong; Keith Goffin

2001 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030110387462

Attracted by the easier access to local markets, many foreign companies have formed manufacturing joint ventures in China. One of the key elements of successful international joint venture (IJV) manufacturing in China is the management of suppliers, since the supply chain plays an essential role in contributing to both the quality of finished products and controlling costs. Supplier management in Chinese IJVs is an under-researched area and so an exploratory study of five manufacturers was conducted using a case study approach. The results show the difficulties faced by IJVs which are in attempting to maintain quality levels at the same time as trying to reduce costs by purchasing materials and components locally. In addition to identifying important implications for companies, the research shows the need for further investigation of the contextual aspects of good supplier management.

Chris Dubelaar; Garland Chow; Paul D. Larson

2001 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030110387480

Effective inventory management is critical to retailing success. Surprisingly, there is little published empirical research examining relationships between retail inventory, sales and customer service. Based on a survey of 101 chain store units, this paper develops and tests a series of hypotheses about retail inventory. Seventy-five percent of the store owners/managers responded to the mail survey. As expected, significant positive relationships were found between inventory, service and sales. Specifically, support was found for the theory that inventory is a function of the square root of sales. Also, greater product variety leads to higher inventory, and service level is an exponential function of inventory. Finally, demand uncertainty was found to have no apparent effect on inventory levels.

Marc J. Schniederjans; Qing Cao

2001 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030110387507

Recent models comparing inventory costs under just-in-time (JIT) purchasing plans and economic order quantity (EOQ) purchasing plans have tended to favor EOQ purchasing in situations where annual demand of inventory is moderately large. Contends that these cost models are lacking dynamic cost components inherent in virtually all JIT purchasing plans. Presents a series of inventory purchasing cost models that extend prior methodology by Fazel by including relevant physical distribution cost savings. Additional comparative models are presented to further demonstrate how other relevant costs factors can be included in a comparative EOQ/JIT model. A cost comparison with an existing problem from the literature is used to illustrate the informational efficacy of new models.

F.T.S. Chan; P. Humphreys; T.H. Lu

2001 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030110387525

A simulation approach to measuring supply chain performance is evaluated which incorporates order release theory. Within manufacturing a number of order release mechanisms have been developed. The importance of order release is first examined and its applicability to monitoring the performance of the supply chain is proposed. A simulation model of a typical, single channel logistics network was developed. Using the simulation model, each of the order release mechanisms was assessed and close agreement was obtained with the work of previous researchers. A new order release approach is proposed which is found to be superior to those analysed previously and should lead to improved supply chain performance.