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Bullwhip Effect in Distribution Echelons of LG and
Samsung Supply Chains
-- Jamal A Farooquie and Parveen Farooquie
This paper is based on the study of a few selected distributors operating in two consumer electronics supply chains. The
purpose of this study is to quantify the bullwhip effect generated by them and compare the two distribution systems. An attempt has also
been made to examine the systems with reference to various causes of bullwhip effect.
© 2009 IUP. All Rights Reserved.
The Influence of Lead Time Variability
on Supply Chain Costs: Analysis of Its Impact on the
Bullwhip Effect
-- Francisco Campuzano Bolarín, Antonio Guillamón Frutos
and Lorenzo Ros Mcdonnell
The Bullwhip effect is a well-known phenomenon, which affects the supply chain management process. It produces variations in
a customer's demand pattern, which amplify as they pass through the production, supply and distribution processes. The deviation
gets amplified upstream at each level of the chain, in the form of replenishment orders. Forrester stated that the amplification is due
to problems arising from non-zero lead times and inaccurate forecasting made by each member of the chain in the face of
demand variability. This paper analyzes the effect of the fluctuation in lead times due to transportation (delivery times) on the distortion
of replenishment/manufacturing orders generated by each member of a traditional supply chain, and the impact of that distortion
on fill rate, inventory costs and transportation costs, by using a dynamic simulation model for the management of the demand in
multilevel supply chains.
© 2009 IUP. All Rights Reserved.
Understanding Value Chain for Growth: A Case of Indian Wine Industry
-- R Patnaik and P K Sahoo
Optimizing the supply chain activities has been the focus of supply chain managers in their quest for creating value.
However, optimizing these activities can only lead to operational efficiency and not organizational effectiveness, which is seen by most as
a more effective means of gaining competitive advantage, meaning growth. On the other hand, considering value chain for growth
has the potential to achieve organizational effectivenesswithout compromising on operational efficiencyas value chain
not only strives to withdraw activities that do not add value to its primary activities, but also introduces
additional (support) activities such as infrastructure, human resource, finance and technology. These
primary and support activities lay the foundation for
competitive advantage and subsequently growth. Notably, primary activities in a value chain address the functions of the supply chain. In
addition, the value chain focuses on the critical elements that seed competitive advantage, through their support activities. The
numerous primary and secondary elements of the value chain, with their interrelationships, linkages and synergy make the value chain act as a
source of opportunity for growth. This paper aims to provide a grounded understanding of the value chain, marked by theoretical review
and analytical constructs. It exemplifies the usage of value chain for competitive advantage and growth by taking the case of an
industry group, the Indian wine industry, which asserts the unexpected emergence of the industry group in the first place. Specific levels
of differentiation and cost benefits can be seen as a source for competitive advantage and growth. The paper builds heavily on the
concepts of Porter, where he proposes the value chain through which an industry group can create value in its offering by rationalizing
coststhrough process improvement or managementto the elements of differentiation that create value for the consumers.
© 2009 IUP. All Rights Reserved.
Unit of Analysis: A Case for Performance Measurement
in Supply Chain Management
-- Inder Jit Singh Mann Steven A Murphy and Vinod Kumar
Due to increasing globalization and competition, there has been an upsurge in Supply Chain Management (SCM).
Performance measurement plays a key role in creating an effective feedback loop to improve management performance. This paper examines
the current approaches to performance measurement in SCM and contributes to the field by suggesting a new approach of
studying performance in SCM based on the unit of analysis.
© 2009 IUP. All Rights Reserved.
Integration of RFID Technology Is a Key Enabler for
Demand-Driven Supply Network
-- Alexander Zeier, Paul Hofmann, Jens Krüger, Jürgen Müller and
Matthieu-Patrick Schapranow
Radio Frequency Identification (RFID) technology can be considered as a key enabler of pull-based supply chain systems. In
the present world, supply chains need to be responsive and supply networks need to be demand-driven. These Demand-Driven
Supply Networks (DDSNs) require a new supply network technology which will enable efficient and effective time-phased
integrated planning, supplier collaboration, synchronization of distribution requirements and transportation activities. Such a technology
requires integration of all the systems, which collect information at various points in the supply chain, and such a system also poses
challenges of collecting the data in real time, handling voluminous data, and the ability to present finer details of the data collected.
Movements toward Real World Awareness (RWA) by introduction of RFID support the above-mentioned challenge of implementing a DDSN.
The present study looks into the possibilities of RFID technology in supply chain information integration. It also discusses
the architecture of RFID technology suitable for the requirements of DDSN.
© 2009 IUP. All Rights Reserved.
An Analysis of Tourism Global Value Chains
-- María Pilar Tejada and Francisco Liñán
The present process of globalization stresses the need to continuously seek international competitiveness. Firms' strategies have
rapidly evolved in the last few years. In this sense, `Global Value Chains' (GVCs) (Gereffi, 1994) are being increasingly used to
describe the whole set of activities involved in the production and consumption of a good or service. Taking part in these global value
chains is essential for the Small and Medium-Sized Enterprises (SMEs) to survive and even make profit from the globalization
process. This paper analyzes the configuration of global value chains in the tourism sector. The participation
of Andalusian SMEs in the global tourism value chain is studied in greater depth.
© 2009 IUP. All Rights Reserved.
Linking Green Supply Chain Management
and Shareholder Value Creation
-- Subir Sen
This paper reviews some of the causes of global warming and its consequences, and identifies Green Supply Chain
Management (GrSCM) as one of the most effective ways to reduce pollution and waste, which represent incomplete and ineffective
utilization of resources or inefficient conversion processes. Deterioration of the environment and excess consumption of resources have
put increasing pressure on corporates operating in emerging markets. The biggest concern facing corporates today is how to reduce
or eliminate adverse environmental impacts of their products and processes throughout their life cycle. The study suggests that
resources committed and utilized for GrSCM need to be looked upon as long-term strategic investments and not merely as cost centers. In
fact, it attempts to bring out its bearing on enhancing shareholder value. The study lends support to the emerging paradigm that
investment in GrSCM and corporate performance need not be mutually exclusive and dichotomous. The study tracks down the GrSCM
strategies adopted by Reliance Industries and tries to assess its linkage with the organization's Price-Earnings (P/E) ratio and ultimately
in creating value for its shareholders. The study proposes that GrSCM not only contributes positively to Corporate Social
Responsibility (CSR), but also generates exceptional value for its shareholders. It, therefore, encourages corporates to shed their myopic view
and become early adopters of GrSCM.
© 2009 IUP. All Rights Reserved.
Quality Certification to Enable Supplier Keiretsu in the
Auto Component Industry
-- Lakshmi Jagannathan
One of the strategies that Indian component manufacturers adopted as a Total Quality Management (TQM) initiative, to become a part
of the global value chain, is the QS 9000 certification. The driving forces for effective TQM implementation have been identified and
strategies evolved for superior performance. This research paper studies the Critical Success Factors (CSFs) of TQM in the Indian auto
component industry. This study is an empirical research conducted among QS 9000 certified auto component manufacturers in and around Chennai,
Tamil Nadu. The study reveals that the most important CSF for TQM among certified auto component manufacturers is supplier quality
management. It explains how specifically the automotive industry is leveraging supplier partnerships for enhanced performance.
© 2009 IUP. All Rights Reserved.
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