Cheng / Choi Innovative Quick Response Programs in Logistics and Supply Chain Management

1. Auflage 2010
ISBN: 978-3-642-04313-0
Verlag: Springer
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 468 Seiten

Reihe: International Handbooks on Information Systems

Quick Response (QR) policy is a market-driven business strategy in which supply chain members work together to react quickly to volatile market demand. Nowadays, with advances in information technologies (such as RFID and ERP systems), new challenges and opportunities arise for the application of QR. This handbook explores QR extensively with a view to discovering innovative QR measures that can help tackle the observed and emerging challenges. The book is organized into four parts, which include chapters on analytical modeling and analyses, information technologies, cases, reviews, and applications. This handbook provides new analytical and empirical results with valuable insights, which will not only help supply chain agents to better understand the latest applications of QR in business, but also help practitioners and researchers to know how to improve the effectiveness of QR using innovative methods.

Autoren/Hrsg.

Choi, Tsan-Ming

Cheng, T. C. Edwin

Inhaltsverzeichnis

1;Preface;6
2;Contents;8
3;Part I Introduction;16
3.1;The Evolution of Quick Response Programs;17
3.1.1;1 Introduction;17
3.1.2;2 The Development of QR in the Apparel Industry;19
3.1.3;3 Implementation of QR;20
3.1.3.1;3.1 Use of Technology in QR;21
3.1.3.2;3.2 Aligning Operations to Support QR;23
3.1.3.3;3.3 Supply Chain Incentives Induced by QR;24
3.1.4;4 Examples of QR in the Apparel Industry;26
3.1.4.1;4.1 QR at Sport Obermeyer;26
3.1.4.2;4.2 QR at Zara;26
3.1.4.3;4.3 QR at Hennes and Mauritz (H&M);27
3.1.4.4;4.4 QR at Benetton;28
3.1.4.5;4.5 QR at Adidas;28
3.1.4.6;4.6 QR at Hilton Hosiery;29
3.1.4.7;4.7 QR at Patrizia Pepe;30
3.1.4.8;4.8 QR at New Look;30
3.1.4.9;4.9 QR at World Company;31
3.1.5;5 Further Development of QR;31
3.1.5.1;5.1 QR Beyond the Apparel Industry;32
3.1.5.2;5.2 QR and Other Methods of Supply Chain Collaboration;33
3.1.6;References;35
3.2;Impact of Information Systems on Quick Response Programs;37
3.2.1;1 Introduction;37
3.2.2;2 Recent IT Developments and Their Impacts on QR;39
3.2.2.1;2.1 Electronic Data Interchange and Point of Sales;40
3.2.2.2;2.2 Radio Frequency Identification;41
3.2.2.3;2.3 Enterprise Resource Planning;42
3.2.2.4;2.4 Customer Relationship Management;44
3.2.2.5;2.5 Collaborative Planning, Forecasting, and Replenishment;45
3.2.3;3 How Should Companies Respond to Advances in IT?;45
3.2.4;4 The Existing Problems and Direction for Potential Future Research;46
3.2.5;5 Conclusions;47
3.2.6;References;48
3.3;Fast Fashion: Achieving Global Quick Response (GQR) in the Internationally Dispersed Clothing Industry;51
3.3.1;1 Introduction;51
3.3.2;2 Globalization in the Clothing Industry;52
3.3.2.1;2.1 Globalization and Mobility in the Clothing Industry;52
3.3.2.2;2.2 Buyer-Driven Supply Networks in Clothing;53
3.3.3;3 Global Quick Response;56
3.3.4;4 Achieving GQR;57
3.3.4.1;4.1 From Sample to Volume;57
3.3.4.2;4.2 Three Key Processes;59
3.3.4.2.1;4.2.1 The New Garment Design and Development Process;59
3.3.4.2.2;4.2.2 The Initial Volume Order;60
3.3.4.2.3;4.2.3 The Repeat and Replenishment Order Process;60
3.3.5;5 Enablers for GQR;61
3.3.5.1;5.1 Market Intelligence and Rapid New Product Introduction;63
3.3.5.2;5.2 Network Structure and Composition;64
3.3.5.3;5.3 Network Planning and Staged Postponement;65
3.3.5.4;5.4 Network Capability, Performance, and Health;67
3.3.6;6 Global Supply Chain Solutions: Examples from Practice;68
3.3.7;7 Conclusions;71
3.3.8;References;71
4;Part II Modelling and Analysis of QR Programmes;75
4.1;Procurement Flexibility under Price Uncertainty;76
4.1.1;1 Introduction;76
4.1.2;2 Literature Review;78
4.1.3;3 Model Development;79
4.1.3.1;3.1 Price Risk-sharing Agreement;80
4.1.3.2;3.2 Capacity Specification;81
4.1.4;4 A Single Adjustment Opportunity;82
4.1.4.1;4.1 The Optimal Policy;82
4.1.4.1.1;4.1.1 The Optimal Adjustment Strategy at Time 1;83
4.1.4.1.2;4.1.2 The Optimal Capacity Allocation Strategy at Time 0;84
4.1.4.2;4.2 Comparisons;86
4.1.4.2.1;4.2.1 Capacity Allocations;86
4.1.4.2.2;4.2.2 Service Performance and Adjustment Opportunities;89
4.1.5;5 Multiple Adjustments;91
4.1.5.1;5.1 Policy Structure;91
4.1.5.1.1;5.1.1 Dedicated Capacity Agreement;91
4.1.5.1.2;5.1.2 Overall Capacity Agreement;92
4.1.5.2;5.2 Discussions on Price Parameters;97
4.1.5.3;5.3 Overall Service Performance;99
4.1.6;6 Concluding Remarks;102
4.1.7;References;102
4.2;The Value of Information in Quick Response Supply Chains: An Assortment Planning View;104
4.2.1;1 Introduction;105
4.2.2;2 Decision Support Framework to Value Potential QR Strategies;109
4.2.3;3 Estimation and Optimisation Tools for Measuring the Value of Information;113
4.2.3.1;3.1 Uncertainty and Information;113
4.2.3.1.1;3.1.1 Case analysis to illustrate the above discussed complex uncertainty patterns;116
4.2.3.2;3.2 Demand;117
4.2.3.2.1;3.2.1 Demand Driver Parameters;118
4.2.3.2.2;3.2.2 Demand Distributions;121
4.2.3.3;3.3 Optimisation Models to Evaluate the Value of Information in Terms of Expected Assortment Profit and its Risk;122
4.2.3.3.1;3.3.1 The Vaagen–Wallace Assortment-Risk Model;122
4.2.3.3.2;3.3.2 The Vaagen–Wallace–Kaut Substitution Model;123
4.2.3.4;3.4 Measuring the Value of Information;126
4.2.3.4.1;3.4.1 Numerical Results;127
4.2.4;4 Concluding Remark;131
4.2.5;References;132
4.3;Improving Revenue Management: A Real Option Approach;135
4.3.1;1 Introduction;135
4.3.2;2 A General Problem Setting for Real Options with Time-varying Strike Prices;138
4.3.3;3 Profit Enhancement: An Example from the Airline Industry;138
4.3.3.1;3.1 Discounted Airfare with a European Option;140
4.3.3.2;3.2 Discounted Airfare with an American Option;141
4.3.3.3;3.3 Numerical Examples;144
4.3.4;4 Risk Management: An Example from the Energy Industry;145
4.3.4.1;4.1 Numerical Examples;148
4.3.5;5 Concluding Remarks and Further Implications;150
4.3.6;References;151
4.4;Supply Chain Scheduling under Quick Response;152
4.4.1;1 Introduction;152
4.4.2;2 Scheduling of Customer Orders for Quick Response;154
4.4.2.1;2.1 Scheduling of Customer Orders on Parallel Machines;155
4.4.2.2;2.2 Scheduling of Customer Orders on Dedicated Machines;156
4.4.3;3 Scheduling the Outsourcing for Quick Response;158
4.4.3.1;3.1 Scheduling on Single Outsourcing Machine;158
4.4.3.2;3.2 Scheduling on In-house and Outsourcing Machines;160
4.4.4;4 Supply Chain Scheduling for Quick Response;162
4.4.4.1;4.1 Batch and Delivery Scheduling in Supply Chain;162
4.4.4.2;4.2 Assembly Supply Chain System;165
4.4.5;5 Conclusion;167
4.4.6;References;168
4.5;Dynamic Pricing of Seasonal Product without Replenishment: A Discrete Time Analysis;170
4.5.1;1 Introduction;170
4.5.2;2 Control Model;172
4.5.2.1;2.1 Timing and Assumptions;172
4.5.2.2;2.2 Control Problem;173
4.5.3;3 Optimal Pricing Solutions;174
4.5.3.1;3.1 Discrete Time Approach;176
4.5.3.2;3.2 Optimal Discrete Time Solutions;176
4.5.3.2.1;3.2.1 Linear Demand;177
4.5.3.2.2;3.2.2 Exponential (Log-Linear) Demand;178
4.5.3.2.3;3.2.3 MNL Demand;178
4.5.3.2.4;3.2.4 MCI Demand;179
4.5.3.3;3.3 Pricing Guideline;180
4.5.4;4 Numerical Study;181
4.5.4.1;4.1 Accuracy;182
4.5.4.2;4.2 Value of Dynamic Pricing;184
4.5.4.2.1;4.2.1 When Inventory is Given;184
4.5.4.2.2;4.2.2 When Inventory is a Decision Variable;185
4.5.5;5 Extensions;187
4.5.6;6 Conclusions;188
4.5.7;References;190
4.6;Supplier Selection in Make-to-Order Manufacturing;192
4.6.1;1 Introduction;192
4.6.2;2 Literature Review;194
4.6.3;3 Model Description;196
4.6.3.1;3.1 Individual Supplier Performance;197
4.6.3.2;3.2 Multiple Suppliers Performance for a Particular Part;199
4.6.3.3;3.3 All Parts for a Custom Order;199
4.6.4;4 Frontier Portfolio Solutions;200
4.6.4.1;4.1 Part Portfolio Frontier Search;201
4.6.4.2;4.2 Order Portfolio Frontier Search;203
4.6.5;5 Committed Delivery Time Reduction (``Crashing'');204
4.6.6;6 Numerical Example;205
4.6.6.1;6.1 Part Portfolio Frontier Search for Given Delivery Time;205
4.6.6.2;6.2 Order Portfolio Frontier Search for Given Delivery Time;206
4.6.6.3;6.3 Delivery Time Reduction;206
4.6.7;7 Numerical Example Discussion;207
4.6.8;8 Conclusions;210
4.6.9;References;211
5;Part III Enabling Technologies for QR Programmes;213
5.1;Enhancing Responsiveness for Mass Customization Strategies through the Use of Rapid Manufacturing Technologies;214
5.1.1;1 Introduction;214
5.1.2;2 Literature Background;217
5.1.2.1;2.1 Responsiveness in Mass Customization;217
5.1.2.2;2.2 Rapid Manufacturing as an enabler for mass customization;219
5.1.3;3 Model;222
5.1.3.1;3.1 Customer Choice;223
5.1.3.2;3.2 The MP Configuration;224
5.1.3.2.1;3.2.1 Evaluation model;225
5.1.3.2.2;3.2.2 Optimization;225
5.1.3.3;3.3 The MC Configuration;226
5.1.3.3.1;3.3.1 Evaluation;227
5.1.3.3.2;3.3.2 Optimization;227
5.1.4;4 Numerical Examples;227
5.1.4.1;4.1 Base example;227
5.1.4.2;4.2 The effect of increased production rate;230
5.1.4.3;4.3 The effect of increased production rate and production cost;230
5.1.5;5 Conclusion;232
5.1.6;References;233
5.2;Innovative Process in E-Commerce Fashion Supply Chains;236
5.2.1;1 Key Drivers Affecting Change;236
5.2.2;2 The Textiles and Apparel Supply Chain;238
5.2.2.1;2.1 E-Commerce in the Textiles Supply Chain;240
5.2.2.2;2.2 Adoption of E-Commerce Technologies;241
5.2.3;3 Adoption and Use of E-Commerce in the Fashion Supply Chain;243
5.2.3.1;3.1 Costs and Benefits;245
5.2.3.2;3.2 Challenges;246
5.2.4;4 Discussion;247
5.2.5;5 Conclusion;250
5.2.6;References;250
5.3;The Next Generation Demand Network in Quick Response Systems: Intelligent Products, Packet Switching and Dynamic Information;252
5.3.1;1 Introduction;252
5.3.2;2 The Role of Lead Times and Delivery Times in Demand Networks;255
5.3.3;3 RFID in Demand Networks;258
5.3.4;4 The Next Generation Demand Network and Quick Response Systems;259
5.3.4.1;4.1 Information Generation Three: IG3;260
5.3.4.2;4.2 Global Track and Trace;261
5.3.4.3;4.3 Intelligent Products;262
5.3.4.4;4.4 Multi-agent Systems (MAS) in Demand Networks;263
5.3.5;5 Circuit-Switching, Packet-Switching and QR Systems;265
5.3.5.1;5.1 Circuit-Switching vs. Packet-Switching;265
5.3.5.2;5.2 The Impact of Demand in QR Systems;265
5.3.5.3;5.3 Packet-Switching in the Demand Network;266
5.3.6;6 Conclusion;269
5.3.7;References;270
5.4;RFID's Applications in Quick Response Systems;273
5.4.1;1 Introduction;273
5.4.2;2 RFID Technology;274
5.4.3;3 RFID on Management;275
5.4.4;4 RFID Functionality;276
5.4.4.1;4.1 RFID Used to Reduce Inventory Shrinkage;276
5.4.4.2;4.2 RFID Used to Improve Inventory Record Accuracy;277
5.4.4.3;4.3 RFID Enhances Information Visibility;277
5.4.5;5 RFID Applications;277
5.4.5.1;5.1 RFID in Retailing-CPG;278
5.4.5.1.1;5.1.1 RFID Used in Smart Shelf;278
5.4.5.2;5.2 RFID in Retailing-Apparel;279
5.4.5.2.1;5.2.1 RFID Used with POS;279
5.4.5.2.2;5.2.2 RFID Used in Fitting Room;279
5.4.5.3;5.3 RFID in Food and Restaurant;280
5.4.5.4;5.4 RFID in Health Care;281
5.4.5.5;5.5 RFID in Logistic;281
5.4.5.6;5.6 Other RFID Applications;282
5.4.6;6 Conclusion;283
5.4.7;References;283
5.5;Enterprise Resource Planning Systems for the Textiles and Clothing Industry;287
5.5.1;1 Introduction;287
5.5.2;2 Literature Review;289
5.5.3;3 ERP Systems in Textiles and Clothing;290
5.5.3.1;3.1 Specific Cases1;290
5.5.3.2;3.2 Common Features and Modules;293
5.5.4;4 Enabling Technologies;297
5.5.5;5 Main Barriers;298
5.5.6;6 Critical Success Factors for Implementing ERP Systems;298
5.5.7;7 Conclusion and Future Developments;300
5.5.8;References;302
5.6;Simulation-based Optimization of Inventory Model with Products Substitution;304
5.6.1;1 Introduction;304
5.6.2;2 The Literature;305
5.6.3;3 The Model;308
5.6.3.1;3.1 Notations and Assumptions;308
5.6.3.2;3.2 The Profit Function;309
5.6.4;4 The Algorithm;311
5.6.5;5 Computational Study;315
5.6.6;6 Conclusion;317
5.6.7;References;318
6;Part IV Applications and Case Studies;320
6.1;Fast Fashion: Quantifying the Benefits;321
6.1.1;1 Introduction;321
6.1.2;2 Literature Review;322
6.1.3;3 Supply Flexibility Solutions;323
6.1.4;4 The Model;324
6.1.4.1;4.1 Markdowns Avoided by Supply Flexibility;325
6.1.4.2;4.2 Stockouts avoided by Supply Flexibility;327
6.1.4.3;4.3 Combining Both Effects: Improved Markdowns and Stockouts;328
6.1.5;5 Metric for Markdowns and Stockouts and Financial Performance;330
6.1.6;6 Data Analysis;331
6.1.6.1;6.1 The ``Zara Gap'';331
6.1.6.2;6.2 Statistical Analysis;332
6.1.6.3;6.3 Effect of 15% Inventory Reduction;334
6.1.7;7 Conclusions;334
6.1.8;References;335
6.2;Divide and Conquer: From MTO to ATO/MTO;336
6.2.1;1 Introduction;336
6.2.1.1;1.1 Background;336
6.2.1.2;1.2 Challenges for SUGA;337
6.2.2;2 The Electronics Supply Chain for Healthcare Products;338
6.2.2.1;2.1 The Global Supply Chain;338
6.2.2.2;2.2 BTG Ordering Process;339
6.2.2.3;2.3 SUGA's Current Manufacturing Practice;340
6.2.3;3 Analysis of the Supply Chain;342
6.2.3.1;3.1 Product Characteristics;342
6.2.3.2;3.2 Consumer Demand Pattern;342
6.2.3.3;3.3 Bullwhip effect;343
6.2.4;4 Solution Strategy;345
6.2.4.1;4.1 Strategic Manufacturing (the methodology of ``divide'');347
6.2.4.2;4.2 Operational Manufacturing (the art of ``conquer'');348
6.2.4.2.1;4.2.1 ATO;348
6.2.4.2.2;4.2.2 MTO;349
6.2.4.2.3;4.2.3 Safety Stock for Long Lead-Time Materials and Forecast Error Measurement;350
6.2.4.2.4;4.2.4 Coordination Of Type I and II Products;352
6.2.4.3;4.3 Reducing the Bullwhip Effect;353
6.2.4.4;4.4 Performance Evaluation;353
6.2.5;5 Implementation and Impact;354
6.2.5.1;5.1 Current Status;354
6.2.5.2;5.2 Technology Innovations;355
6.2.6;6 Conclusion;357
6.2.7;References;359
6.3;Quick Response Practices in the Hong Kong Apparel Industry;360
6.3.1;1 Introduction;360
6.3.2;2 Literature Review;361
6.3.3;3 Current Practices in Hong Kong's Apparel Industry;363
6.3.3.1;3.1 The TAL Group (TAL)1;363
6.3.3.2;3.2 MOISELLE International Holdings Limited (Moiselle);364
6.3.3.3;3.3 Magenta Wardrobe Fashion Associates Ltd (Magenta);365
6.3.3.4;3.4 DIS2: The Buying Office for a European Fashion Brand ``M'';366
6.3.3.5;3.5 RTL: A Hong Kong Branded Retailer in Ladies' Wear;367
6.3.3.6;3.6 MFR: A Hong Kong ``Small-Medium Enterprise'' (SME) Manufacturer;368
6.3.3.7;3.7 Summary of the Review of Current QR Practices;369
6.3.4;4 Managerial Implications and Conclusions;370
6.3.5;References;371
6.4;Efficient Response Systems with RFID Technology: Cases in China;373
6.4.1;1 Introduction;373
6.4.2;2 Literature Review;375
6.4.3;3 Warehouse Management in Tobacco Industry;377
6.4.3.1;3.1 Company Background;378
6.4.3.2;3.2 Technology Solutions;378
6.4.3.3;3.3 Benefits;380
6.4.4;4 Home–School Communications System in Primary School;381
6.4.4.1;4.1 Background of the Pilot Primary School;382
6.4.4.2;4.2 Solutions;383
6.4.4.3;4.3 Discussions;384
6.4.5;5 Extensions of RFID Application for Efficient Response in Other Ways;384
6.4.5.1;5.1 RFID–DWMS in the Whole Tobacco Supply Chain;384
6.4.5.2;5.2 RFID Applications in Electronic Toll Collection System;385
6.4.6;6 Conclusion;386
6.4.7;References;387
6.5;The Emergence of the Fast Fashion Business Model and Imposed Quick Response Challenges for Chinese Fabric Manufacturers;390
6.5.1;1 Introduction;391
6.5.1.1;1.1 Fast Fashion;392
6.5.1.1.1;1.1.1 Zara's Business Model;393
6.5.1.2;1.2 Retail Buying Cycle: Traditional vs. Fast Fashion;394
6.5.1.3;1.3 China's Competitive Advantages for Fast Fashion;396
6.5.1.3.1;1.3.1 Business Climate and Infrastructure;397
6.5.1.3.2;1.3.2 Proximity to Major Markets;397
6.5.1.3.3;1.3.3 Market Accessibility;398
6.5.1.3.4;1.3.4 Labor and Management;398
6.5.1.3.5;1.3.5 Raw Material Inputs: Access to Quality and Cost-Competitive Fabric Production;398
6.5.1.3.6;1.3.6 Vertical Integration of Industry Service: Quality and On-Time Delivery;399
6.5.1.4;1.4 Supplier Management;399
6.5.1.5;1.5 Supplier Dynamic Capabilities and Innovation;402
6.5.2;2 Methodology;404
6.5.2.1;2.1 Case Research Design;405
6.5.2.2;2.2 Number of Cases;406
6.5.2.3;2.3 Modified Convergent Interview;406
6.5.2.4;2.4 Design of Questionnaire Survey;408
6.5.2.5;2.5 Data Analysis and Model Confirmation;408
6.5.3;3 Theoretical Framework and Research Issues;409
6.5.3.1;3.1 Research Issue 1: Dynamic Capabilities;409
6.5.3.2;3.2 Research Issue 2: Firm Strategy;410
6.5.3.3;3.3 Research Issue 3: Capability Development;410
6.5.3.4;3.4 Research Issue 4: Supply Chain Performance;411
6.5.4;4 Case Research Procedure;412
6.5.4.1;4.1 Profile of Companies Surveyed;412
6.5.4.2;4.2 Interview Location and Conduct;412
6.5.4.3;4.3 Interview Observations;415
6.5.5;5 Results and Analysis;415
6.5.5.1;5.1 Examination of Supplier Dynamic Capabilities;416
6.5.6;6 Discussion and Managerial Implications;419
6.5.7;7 Limitations and Future Avenues of Research;419
6.5.8;8 Conclusion;420
6.5.9;References;421
6.6;Innovative Mass Customization in the Fashion Industry;426
6.6.1;1 Introduction;426
6.6.2;2 Literature Review;428
6.6.2.1;2.1 Mass Customization: Background;428
6.6.2.2;2.2 Mass Customization and Supply Chain Management;429
6.6.2.3;2.3 Modularity;431
6.6.2.4;2.4 Customer Involvement;432
6.6.2.5;2.5 Technology;433
6.6.2.6;2.6 Classifications of Mass Customization;434
6.6.2.7;2.7 Performance Measures;436
6.6.2.8;2.8 Challenges of Mass Customization;436
6.6.2.8.1;2.8.1 External Complexity;437
6.6.2.8.2;2.8.2 Internal Complexity;437
6.6.3;3 MC in the Fashion Industry;438
6.6.4;4 Traditional MC and Innovative MC;442
6.6.4.1;4.1 Traditional Mass Customization;442
6.6.4.1.1;4.1.1 Levi's;442
6.6.4.1.2;4.1.2 GS Company (http://www.blablabra.com/)1;443
6.6.4.2;4.2 Innovative Mass Customization;444
6.6.4.2.1;4.2.1 Brooks Brothers;445
6.6.4.2.2;4.2.2 Lands' End;446
6.6.4.2.3;4.2.3 Nike;447
6.6.4.3;4.3 Comparison Between Traditional and Innovative Mass Customization;448
6.6.4.4;4.4 Remarks: New Models;448
6.6.5;5 Recommendations and Conclusion;450
6.6.6;References;453
6.7;Improving Allocation of Inventory for Quick Response to Customer Orders: A Case Study;458
6.7.1;1 Introduction;458
6.7.2;2 Existing Inventory Allocation System;460
6.7.3;3 Problems with the Existing Allocation Scheme;461
6.7.4;4 Analysis of the Problems;461
6.7.5;5 New Allocation Scheme;462
6.7.6;6 Testing of the New Allocation Scheme;463
6.7.7;7 On-Site Programming, Testing and Implementation;464
6.7.8;8 Conclusion;466
6.7.9;References;466
7;Index;467