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The IUP Journal of Operations Management

November '11
Focus

As the world tries to grapple with a peculiar financial situation, the present issue focuses on the recent developments in operations and supply chain.

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Designing an Agent-Based B2B Market Place for Third-Party Logistics Service Providers (3PLs)
Reengineering Treatment in Block Replacement Decisions Using Higher Order Markov Chains
Efficiency Study of Indian Automobile Companies Using DEA Technique: A Case Study of Select Companies
Technology Adoption in Sericulture Management in India: A Study
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Designing an Agent-Based B2B Market Place for Third-Party Logistics Service Providers (3PLs)

-- Ashwin Kumar and Sandeep Dulluri

Logistics is the primary building block of any manufacturing or service supply chain and is a key factor for improving the performance and productivity of manufacturing and service organization. A B2B market place for the logistics service providers basically provides the infrastructure for matching the requirements of the buyer with a right logistics service provider. In the current paper, a Double Auction model is implemented for winner determination.

Reengineering Treatment in Block Replacement Decisions Using Higher Order Markov Chains

-- Naveen Kilari, C Nadhamuni Reddy and B Balu Naik

This paper attempts to evaluate the reengineering option against replacement of a block of computers. For this purpose, a block replacement model for block of items using high-order Markov chains is developed and employed (Kilari et al., 2011). To make the model more realistic, two intermediate repairable states, i.e., minor repair state and major repair state, are introduced between the working and failure states of the system. Transition probabilities for future periods are estimated by spectral decomposition in First Order Markov Chain (FOMC) and by moving weighted transition model for Second Order Markov Chain (SOMC). With these probabilities, the number of systems in each state and the corresponding maintenance cost are computed accordingly. The predicted inflation for computer and computer-based system in India and the real value of money using Fisherman’s relation are employed to study and develop the real-time mathematical model for group replacement decision making, which is useful for large IT companies and any other block of items as well. In continuation to this, an attempt is made to evaluate the option of reengineering the computer networking process to reduce the cost of hardware, maintenance and support. For this thin-client technology is used in lieu of replacement option. For this, the developed block replacement model using SOMC is extended to accommodate the reengineering cost.

Efficiency Study of Indian Automobile Companies Using DEA Technique: A Case Study of Select Companies

-- Debaprosanna Nandy

A developed transportation system plays a pivotal role in the development of an economy. With the advancement of transportation system, the automobile industry of India is also growing at a high speed, occupying an important place in the Indian economy. Indian auto industry is now growing at a pace of around 18% per annum and has gradually emerged as a desirable destination for global auto players like Volvo, General Motors and Ford. During this period of global recession, Indian automobile companies should operate more efficiently to grab not only the indigenous market, but also the global market. An attempt has been made in this paper to evaluate the efficiency of the automobile companies using the popular nonparametric data envelopment analysis technique. This empirical study not only throws light on the technical efficiencies of the automobile companies, but also offers a few suggestions as to how an inefficient company may become efficient by overcoming its shortcomings.

Technology Adoption in Sericulture Management in India: A Study

-- R V Praveena Gowda, A N N Murthy and E Muniraju

Silk is one of the oldest trades on earth providing a turnover of 2,000 cr for India. Sericulture provides gainful employment, and facilitates economic development and improvement in the quality of life of the people in rural areas. It, therefore, plays a vital role in antipoverty program and prevents migration of rural people to urban area in search of employment. In India, 60 lakh people are involved in this occupation. Sericulturists practice indigenous managerial skill to cultivate silk; because of this India is unable to produce enough quantity of silk to meet the growing demand. A survey shows that sericulturists merely adopt the available technology in their sericulture management, but the critical areas also need to adopt the technology in order to meet the demand. There is an urgent need to adopt specific modern and mechanized systems at all levels of sericulture activities. Some of the low-cost tools discussed in this paper and other tools developed by Japan and CSRI, India, are recommended at various levels of sericulture activities. Sericulturists by making best use of the modern low-cost tools in silk rearing, mulberry harvesting and pruning can enjoy a huge market not only domestically, but also globally.

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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