International Journal of Physical Distribution & Logistics Management

Cuneyt Eroglu; Brent D. Williams; Matthew A. Waller

2011 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031111138808

Purpose – The purpose of this paper is to investigate the direct and interaction effects of shelf space, case pack quantity, and consumer demand on shelf stockouts, i.e. stockouts at the shelf level when inventory is available in the backroom of a retail store. Design/methodology/approach – This study uses discrete‐event simulation based on data collected from the ready‐to‐eat breakfast cereal category with multiple stockkeeping units (SKUs) to model a retail supply chain consisting of a supplier, a retailer, and consumers. Findings – The results indicate that shelf space and case pack quantity have direct effects on shelf stockouts. Furthermore, evidence is found for interactions among shelf space, case pack quantity and consumer demand. Though many retailers adopt simple heuristics for shelf space allocation, such as a multiple of case pack quantity, this study suggests that such heuristics tend to over‐ or underestimate shelf space requirements when consumer demand is ignored. Originality/value – This study suggests that managers should allocate shelf space for SKUs on the basis of not only case pack quantity but also consumer demand.

Sander de Leeuw; Matthias Holweg; Geoff Williams

2011 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031111138817

Purpose – The purpose of this paper is to investigate the effect of decentralised control on finished goods inventory levels in a distribution system, and to identify the factors that determine the overall inventory level. Design/methodology/approach – The authors' study is based on a mixed method approach using both a survey and semi‐structured interviews to assess inventory management practices and firm performance. Findings – It was found that the common assumptions that distribution outlets or dealers are homogenous and that their behaviour is uniform in response to central control, such as the manufacturer's strategy, do not hold in practice. In fact, the authors show that under conditions of decentralised control, the inventories held at outlet level vary greatly around the aggregate inventory at overall manufacturer level and in this sense bear little resemblance to it. Amongst other conclusions, these findings provide a possible explanation for previous studies' inconclusive evidence on inventory reduction. Research limitations/implications – The authors' research is based on evidence from the automotive industry in the USA; future research may include a wider industry analysis and geographical scope. Practical implications – The paper identifies how incentives and decision‐making structures at the outlet level need to be considered in order to derive decisions that are optimal at the supply chain level. Originality/value – The paper extends the current literature on the determinants of inventory levels by using dealer‐level data, as opposed to manufacturer or firm‐level data in previous studies, thereby identifying possible causes for the previously inconclusive evidence on inventory levels in distribution systems.

Alessandro Perego; Sara Perotti; Riccardo Mangiaracina

2011 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031111138826

Purpose – The purpose of this paper is to classify research on information and communication technology (ICT) for logistics and freight transportation on the basis of the main themes and methods and proposes directions for future research. Design/methodology/approach – The review is based on 44 papers published from 1994 to 2009 in international peer‐reviewed journals. The academic papers are analysed and classified according to the research methodology adopted and the themes addressed. Findings – While there are many contributions taking the “public transportation” perspective (i.e. the viewpoint of public stakeholders), papers focussing on the “private transportation” perspective (i.e. the viewpoint of the private companies offering logistics and transportation services) are fewer and relatively more recent. Additionally, even though in recent years researchers have also started to examine the decision‐making process of ICT adoption, many themes are under‐represented in literature, such as the subject of integration among different application types, empirical research on ICT adoption and the role of technology providers in the adoption process. As far as the methodology is concerned, the review revealed that many of the papers examined are either conceptual papers or empirical studies (i.e. mostly based on surveys, or else on case studies or interviews), while simulation and modelling are rarely present. Research limitations/implications – While efforts were made to be all‐inclusive, significant research efforts may have been inadvertently omitted. However, the authors believe that this review is an accurate representation of the body of research on ICT for logistics and transportation companies published during the specified timeframe, and feel that confidence may be placed on the resulting assessments. Originality/value – The paper offers a guide for the review of previous research on this topic and identifies the most important issues that need to be addressed in future research.

Michael Bernon; Silvia Rossi; John Cullen

2011 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031111138835

Purpose – From a synthesis of empirical findings and literature, the aim of this paper is to present a conceptual framework for managing retail reverse logistics operations. The framework is designed to assist both practitioners and academics in better understanding the key management aspects involved. The paper also identifies some future research directions that are derived from this conceptual framework. Design/methodology/approach – The study was exploratory and motivated by a grounded theory approach aimed at providing a conceptual framework for managing retail reverse logistics. Findings – Retail reverse logistics operations are multi‐faceted and need to be managed as an integrated supply chain activity. Three overarching management dimensions are proposed; operational performance, organisational integration and management reporting and control. Research limitations/implications – This is an inductive piece of research and it is important to recognise that only analytical generalisation is claimed rather than any statistical generalisation. Also, the study was undertaken in the context of the UK retail sector and therefore further comparative work could be undertaken in different international contexts. Practical implications – The adoption of the framework will have impact on practitioners by assisting them in reducing the volumes of products being returned, lower their reverse logistics operational costs and increase their product asset recovery values. Originality/value – Although there is a growing body of literature relating to retail reverse logistics it is fragmented by multiple perspectives. There is little in terms of frameworks that embody the management aspects involved. Having reviewed the literature the authors' empirical results show that, in some areas, practice leads theory and therefore the findings will add to academic discourse.

Ila Manuj; Funda Sahin

2011 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031111138844

Purpose – The objective of this paper is to develop a comprehensive model of supply chain and supply chain decision‐making complexity that provides an understanding of the drivers of supply chain complexity and strategies to manage supply chain and supply chain decision‐making complexity and outcomes. Design/methodology/approach – Grounded theory methodology is employed to build a theory of supply chain and supply chain decision‐making complexity and develop propositions related to antecedents, moderators, and outcomes of supply chain complexity. In addition, extensive literature review and informal interactions with a number of supply chain professionals have been used to validate the theory. Findings – In addition to identifying the antecedents of supply chain complexity, the authors explore strategic, human cognitive ability, and tactical moderators for managing supply chain complexity. Research limitations/implications – The comprehensive framework presented in the paper builds a theory of supply chain and supply chain decision‐making complexity that is grounded in empirical data. The research also incorporates disparate findings, constructs from multi‐disciplinary research on supply chain complexity and provides future research directions. Practical implications – The research helps practitioners better understand the sources and outcomes of supply chain complexity and how to manage it. Various strategies to moderate the impact of supply chain complexity are presented. Originality/value – An integrated, comprehensive theory of supply chain complexity is proposed along with definitions of supply chain complexity and supply chain decision‐making complexity. The proposed model is rooted in actual practice and supported by the existing literature.