TY - JOUR
T1 - Assessing the effects of operational processes and information systems on inventory performance
AU - Rabinovich, Elliot
AU - Dresner, Martin E.
AU - Evers, Philip T.
N1 - Funding Information:
The authors would like to thank Greg Hancock, Associate Professor, Department of Measurement, Statistics and Evaluation, and Paul Zantek, Assistant Professor, Department of Decision and Information Technologies, both of the University of Maryland, for their comments on earlier versions of the paper. This research was funded in part by the National Science Foundation, Grant title: “Scalable Supply Chain Infrastructures: Models and Analysis”, Grant no.: DMI9908137.
PY - 2003/1
Y1 - 2003/1
N2 - Over the past decade, manufacturing firms have implemented enterprise-wide information systems in order to improve their performance. In many cases, the achieved results have been much less than anticipated. Previous research suggests that in order to realize maximum performance improvements it is necessary to access timely and informative customer demand data. While enterprise-wide information systems may contribute to the realization of this objective, operational processes, such as inventory management and mass customization may also be effective in improving the firm's inventory performance. This paper develops a structural equation model that evaluates the impact of enterprise-wide information systems, along with four operational processes, on inventory performance. The results indicate that the use of operational processes, especially just-in-time (JIT), rather than the use of enterprise-wide information systems, leads to improved performance as measured by inventory speculation, lead times, and turnover ratios.
AB - Over the past decade, manufacturing firms have implemented enterprise-wide information systems in order to improve their performance. In many cases, the achieved results have been much less than anticipated. Previous research suggests that in order to realize maximum performance improvements it is necessary to access timely and informative customer demand data. While enterprise-wide information systems may contribute to the realization of this objective, operational processes, such as inventory management and mass customization may also be effective in improving the firm's inventory performance. This paper develops a structural equation model that evaluates the impact of enterprise-wide information systems, along with four operational processes, on inventory performance. The results indicate that the use of operational processes, especially just-in-time (JIT), rather than the use of enterprise-wide information systems, leads to improved performance as measured by inventory speculation, lead times, and turnover ratios.
KW - Empirical research methods
KW - Logistics/distribution
KW - MIS/operations interface
KW - Structural equation modeling
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U2 - 10.1016/S0272-6963(02)00041-4
DO - 10.1016/S0272-6963(02)00041-4
M3 - Article
AN - SCOPUS:0037213090
SN - 0272-6963
VL - 21
SP - 63
EP - 80
JO - Journal of Operations Management
JF - Journal of Operations Management
IS - 1
ER -