{"id":440,"date":"2016-07-13T12:58:33","date_gmt":"2016-07-13T17:58:33","guid":{"rendered":"http:\/\/blogs.uww.edu\/prasad\/?page_id=440"},"modified":"2016-07-13T12:58:33","modified_gmt":"2016-07-13T17:58:33","slug":"information-enrichment-designing-the-supply-chain-for-competitive-advantage","status":"publish","type":"page","link":"https:\/\/blogs.uww.edu\/prasad\/teaching\/independent-study\/information-enrichment-designing-the-supply-chain-for-competitive-advantage\/","title":{"rendered":"Information enrichment: designing the supply chain for competitive advantage"},"content":{"rendered":"
    \n
  1. Mason-Jones and D.R. Towill<\/li>\n<\/ol>\n

    Supply Chain Management<\/h2>\n

    1997, Vol. 2, No. 4, p. 137-148<\/p>\n

     <\/p>\n

    1)\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction<\/p>\n

      \n
    1. a) Members within supply chains should work together seamlessly<\/li>\n
    2. b) Pipeline: a mechanism by which materials and information flow through the supply chain.<\/li>\n
    3. c) In many chains, the only player who knows the true demand is the retailer<\/li>\n
    4. d) Market information is delayed and distorted as it flows through the supply chain<\/li>\n
    5. i) Information ages and loses value<\/li>\n
    6. ii) Old information causes amplifications, delay and overhead<\/li>\n<\/ol>\n

      2)\u00a0\u00a0\u00a0\u00a0\u00a0 Information as a competitive advantage<\/p>\n

        \n
      1. a) Major technology behind improved data flow: EDS<\/li>\n
      2. i) Distortion and magnification still remain<\/li>\n
      3. b) IT makes it possible to eliminate lead-time on information<\/li>\n
      4. i) Constraint: the belief that Information is power to each individual company in the chain<\/li>\n
      5. ii) Companies may deliberately distort information<\/li>\n
      6. c) Information drives the supply chain<\/li>\n
      7. i) Market sales data is the information catalyst<\/li>\n
      8. ii) In a traditional supply chains, the retailer is the only player that has direct view of consumer demand<\/li>\n<\/ol>\n

        3)\u00a0\u00a0\u00a0\u00a0\u00a0 The value of information<\/p>\n

          \n
        1. a) Implementing IT is not enough<\/li>\n
        2. i) It only transfers the same data faster<\/li>\n
        3. ii) Management of information is the key<\/li>\n
        4. b) Law of industrial dynamics<\/li>\n
        5. i) If demand for products is transmitted along a series of inventories using stock control ordering, then the demand variation will increase with each transfer<\/li>\n
        6. ii) Holding stock costs money, but excess can result in obsolescence<\/li>\n
        7. c) Simulations<\/li>\n
        8. i) The beer distribution game<\/li>\n<\/ol>\n

          (1)\u00a0\u00a0 Objective: to minimize cumulative costs of excess inventory and stock-outs over the length of the game<\/p>\n

          (2)\u00a0\u00a0 Information is distorted by lead time, transfer and subsequent product delivery<\/p>\n

          (3)\u00a0\u00a0 The presence of order magnification is evident<\/p>\n

          4)\u00a0\u00a0\u00a0\u00a0\u00a0 The Information enriched supply chain<\/p>\n

            \n
          1. a) Each player bases their order decision on the best combination of immediate internal sales and market sales data<\/li>\n
          2. b) Simulation<\/li>\n
          3. i) Order cycle time arbitrarily set at one week<\/li>\n
          4. ii) Each process lag is set at four weeks<\/li>\n<\/ol>\n

            iii)\u00a0\u00a0\u00a0\u00a0 Simulation needs to establish how to use direct data in the order decision<\/p>\n

            5)\u00a0\u00a0\u00a0\u00a0\u00a0 Dynamic response to a step input<\/p>\n

              \n
            1. a) Improvement was initially assessed by<\/li>\n
            2. i) the factory order rate<\/li>\n
            3. ii) factory stock level patterns<\/li>\n
            4. b) Direct information through information enrichment benefits:<\/li>\n
            5. i) Production order control<\/li>\n
            6. ii) Stock level control<\/li>\n
            7. c) Delay of initial response is eradicated<\/li>\n<\/ol>\n

              6)\u00a0\u00a0\u00a0\u00a0\u00a0 Dynamic response to a random marketplace demand<\/p>\n

                \n
              1. a) Simulation<\/li>\n
              2. i) Five competing designs were used with random consumer demand<\/li>\n<\/ol>\n

                (1)\u00a0\u00a0 100% information enrichment<\/p>\n

                (a)\u00a0\u00a0\u00a0 not required to gain the most competitive advantage<\/p>\n

                (2)\u00a0\u00a0 75% information enrichment<\/p>\n

                (a)\u00a0\u00a0\u00a0 offered equally good response as 100%<\/p>\n

                (b)\u00a0\u00a0 offers greatest opportunity for competitive advantage id some buffering of the factory process is vital<\/p>\n

                (3)\u00a0\u00a0 50% information enrichment<\/p>\n

                (4)\u00a0\u00a0 25% information enrichment<\/p>\n

                (5)\u00a0\u00a0 0% information enrichment<\/p>\n

                  \n
                1. ii) Forrester effect is evident<\/li>\n<\/ol>\n

                  (1)\u00a0\u00a0 As total pipeline usage of direct market data is reduced, the system filters out the high frequency fluctuations of demand<\/p>\n

                  iii)\u00a0\u00a0\u00a0\u00a0 Overall Key points<\/p>\n

                  (1)\u00a0\u00a0 Use of undistorted data can improve stock levels and responsiveness<\/p>\n

                  (2)\u00a0\u00a0 The comprehensive effect on the entire supply chain represents a strong competitive advantage<\/p>\n

                  (3)\u00a0\u00a0 Impact of demand magnification is lessened<\/p>\n","protected":false},"excerpt":{"rendered":"

                  Mason-Jones and D.R. Towill Supply Chain Management 1997, Vol. 2, No. 4, p. 137-148   1)\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction a) Members within supply chains should work together seamlessly b) Pipeline: a mechanism by which materials and information flow through the supply chain. c) In many chains, the only player who knows the true demand is the retailer […]<\/p>\n","protected":false},"author":3916,"featured_media":0,"parent":118,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-440","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/users\/3916"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/comments?post=440"}],"version-history":[{"count":1,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/440\/revisions"}],"predecessor-version":[{"id":441,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/440\/revisions\/441"}],"up":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/118"}],"wp:attachment":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/media?parent=440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}