scholarly journals Improving warehouse labour efficiency by intentional forecast bias

2018 ◽  
Vol 48 (1) ◽  
pp. 93-110 ◽  
Author(s):  
Thai Young Kim ◽  
Rommert Dekker ◽  
Christiaan Heij
Keyword(s):  
Capacity Planning ◽  
Labour Productivity ◽  
Forecast Model ◽  
Consumer Electronics ◽  
Demand Forecast ◽  
Content Type ◽  
Forecast Bias ◽  
Optimal Bias ◽  
Demand Forecasts

Purpose The purpose of this paper is to show that intentional demand forecast bias can improve warehouse capacity planning and labour efficiency. It presents an empirical methodology to detect and implement forecast bias. Design/methodology/approach A forecast model integrates historical demand information and expert forecasts to support active bias management. A non-linear relationship between labour productivity and forecast bias is employed to optimise efficiency. The business analytic methods are illustrated by a case study in a consumer electronics warehouse, supplemented by a survey among 30 warehouses. Findings Results indicate that warehouse management systematically over-forecasts order sizes. The case study shows that optimal bias for picking and loading is 30-70 per cent with efficiency gains of 5-10 per cent, whereas the labour-intensive packing stage does not benefit from bias. The survey results confirm productivity effects of forecast bias. Research limitations/implications Warehouse managers can apply the methodology in their own situation if they systematically register demand forecasts, actual order sizes and labour productivity per warehouse stage. Application is illustrated for a single warehouse, and studies for alternative product categories and labour processes are of interest. Practical implications Intentional forecast bias can lead to smoother workflows in warehouses and thus result in higher labour efficiency. Required data include historical data on demand forecasts, order sizes and labour productivity. Implementation depends on labour hiring strategies and cost structures. Originality/value Operational data support evidence-based warehouse labour management. The case study validates earlier conceptual studies based on artificial data.

Knowledge transfer roles of subsidiaries in MNCs’ networks

2019 ◽  
Vol 29 (4) ◽  
pp. 329-346 ◽  
Author(s):  
Cigdem Baskici
Keyword(s):  
Knowledge Transfer ◽  
Single Case ◽  
Research Question ◽  
Hierarchical Structures ◽  
Knowledge Flows ◽  
Consumer Electronics ◽  
Knowledge Network ◽  
Content Type ◽  
Knowledge Based

Purpose Although there have been a considerable number of studies regarding subsidiary role typology in multinationals’ management literature, there appear to be few studies that consider knowledge-based role typology from the network-based perspective. The purpose of this study is to fill this gap and extend the study of Gupta and Govindarajan (1991). Thus, the study focuses on answering the following research question: Do subsidiaries have different roles in terms of knowledge flows within a multinational company (MNC)? Design/methodology/approach This empirical study has been carried out as an explorative single case study. An MNC with 15 foreign subsidiaries headquartered in Turkey, which operated in the manufacturing of household appliances and consumer electronics, has been selected as the case. Knowledge transfer is analyzed in this MNC from the network perspective. Findings Four role typologies are detected for subsidiaries of the MNC: collector transmitter, collector diffuser, converter transmitter and converter diffuser. Research limitations/implications Findings of this study are specific to this case. Testing the findings in a sample consisting of subsidiaries of MNCs producing transnational products may contribute to the generalizability of these roles. Practical implications This study offers potentially important findings for MNC managers to use. First, in this study, knowledge flows' route could be defined within MNCs’ dual network. Second, role typologies could inform MNC managers to design their MNCs’ knowledge network. Originality/value The suggested typologies are expected to more accurately define the roles of subsidiaries within contemporary MNCs which are accepted to be transformed from hierarchical structures to network-based organizations.

Warehouse configuration in omni-channel retailing: a multiple case study

2019 ◽  
Vol 50 (5) ◽  
pp. 509-533
Author(s):  
Joakim Hans Kembro ◽  
Andreas Norrman
Keyword(s):  
Case Studies ◽  
Conceptual Models ◽  
Construction Material ◽  
Multiple Case Study ◽  
Consumer Electronics ◽  
Future Research ◽  
Content Type ◽  
Automation Systems ◽  
Multiple Case

Purpose The purpose of this study is to explore warehouse configuration in omni-channel retailing. Design/methodology/approach A multiple case study is conducted with six large omni-channel retailers from three different sectors. Findings The study shows an increase in the number, variation and frequency of flows passing through omni-channel warehouses. Along with an increased variety of stock keeping units (including singles vs multipacks), there is an increase in the complexity of planning and coordination of order fulfillment. Retailers test a mix of different solutions for storage and picking and partly shift focus to advanced sorting operations. The companies already have or plan to invest in substantial automation systems, which emphasize the importance of capturing and using accurate master data. Research limitations/implications The study highlights the need to understand the interrelations and co-development of configuration elements in omni-channel warehousing. The findings also suggest that a successful transformation requires increased collaboration with upstream and downstream partners. Conceptual models are developed to illustrate strategies and development paths in omni-channel warehousing, and suggestions for future research are summarized in a research agenda. A research limitation is the focus on Swedish retailers in three sectors (fashion, consumer electronics and DIY/construction material). Future studies can include additional sectors, extend the geographical scope and explore cross-regional differences. Practical implications As one of the few deeper case studies on omni-channel warehousing, practitioners will find new configurations described and analyzed here. Along with conceptual models, a synthesis of challenges and potential solutions are presented to support retailers’ practical analysis and decision making. Originality/value This is one of the first multiple case studies that go deeper into omni-channel warehouse configuration, which is of increasing importance to both scholars and practitioners in the field.

scholarly journals Logistics services and Lean Six Sigma implementation: a case study

2016 ◽  
Vol 7 (3) ◽  
pp. 324-342 ◽  
Author(s):  
Leopoldo Gutierrez-Gutierrez ◽  
Sander de Leeuw ◽  
Ruud Dubbers
Keyword(s):  
Six Sigma ◽  
Process Management ◽  
Relevant Information ◽  
Lean Six Sigma ◽  
Consumer Electronics ◽  
Value Stream Mapping ◽  
Content Type ◽  
Control Approach ◽  
Logistics Services

Purpose This paper aims to analyze the application of Lean Six Sigma (LSS) framework for supporting continuous improvement (CI) in logistics services. Both the lean philosophy and the Six Sigma methodology have become two of the most important initiatives for CI in organizations. The combination of both alternatives – LSS – brings significant benefits for companies applying this method, and its influence in logistics services can be relevant. Design/methodology/approach A case study on the logistics services of a large consumer electronics company is performed. In this sector, high quality in logistics services is crucial. Using within-case and cross-case analyses, the paper discusses the implementation of LSS in two internal logistics processes. Findings The paper identifies important implementation aspects when applying LSS to logistics services, such as CI structure, strategic analysis, cross-functional teams and process management. Furthermore, the paper discusses the potential in logistics services of the DMAIC (define, measure, analyze, improve and control) approach and tools such as value stream mapping, SIPOC (supplier, input, process, output, and customer) and process mapping. Practical implications The paper analyzes two logistics processes where LSS has been applied – a payment process and a request-to-ship process. The analysis of both processes offers relevant information about organizational implementation in a logistics services environment about process improvement and about the use of LSS tools. Originality/value First, this paper addresses the gap in literature about LSS and logistics’ activities. Furthermore, the case company, with more than 9,000 employees and distributing its products to more than 100 countries, constitutes a valuable source of information to obtain insights into the implications of implementing LSS in logistics services.

Naini Papers: capacity dilemma

2017 ◽  
Vol 7 (1) ◽  
pp. 1-22
Author(s):  
Kunal K. Ganguly ◽  
Siddharth Rai
Keyword(s):  
Operations Management ◽  
Capacity Planning ◽  
Capacity Utilization ◽  
Subject Area ◽  
Content Type ◽  
The Subject ◽  
A Company ◽  
Alternative Operations ◽  
Idle Capacity

Subject area The subject area of the case is operations management and capacity planning. The case adopts different operation strategies to use the idle capacity. Study level/applicability The case study is suitable for discussion in masters level classes. The case explains the situation of a company which is fighting for its survival. The case reveals the alternative operations strategies it applies to maximize its capacity utilization and reduce its costs. Case overview The case describes a paper producing company which is earning low margins. The company’s capacity remains unused during the off-seasons. The company then plans to share its capacity with another dying industry. Both the companies plan to cooperate and share resources. However, there are other attractive alternatives too and the dilemma situations leave the gap for continuous discussions. Expected learning outcomes The case aims at providing potential alternatives to the students and initiating healthy discussions. The students will be able to understand the capacity utilization dilemmas and applicability of the operations strategy concept in practice. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 9: Operations and Logistics.

scholarly journals Tactical capacity planning in hospital departments

2019 ◽  
Vol 32 (1) ◽  
pp. 233-245
Author(s):  
Agneta Larsson ◽  
Anna Fredriksson
Keyword(s):  
Capacity Planning ◽  
Planning Process ◽  
Multiple Case Study ◽  
Tactical Planning ◽  
Content Type ◽  
Essential Components ◽  
Multiple Case ◽  
Planning Processes ◽  
Context Specific

Purpose The purpose of this paper is to explore tactical planning potential within hospital departments. The study had two objectives: first, to develop a framework for tactical capacity planning in healthcare departments by identifying and structuring essential components for healthcare capacity management; and, second, to identify context-specific requirements and functionality demands on tactical planning processes within healthcare. Design/methodology/approach A framework for tactical capacity planning was developed through a literature review. Additionally, an exploratory multiple-case study was performed, with cases from three Swedish hospital departments, which provide the opportunity to study framework applicability in its natural context. Findings Findings illustrate how an active tactical planning process can facilitate adjustments to capacity. However, the multiple-case study shows that there are contextual differences between departments, depending on available treatments and resources that affect capacity adjustments, and how the planning process activities should be structured. Originality/value This project develops a framework for a tactical capacity-planning process adapted to healthcare provider contexts. By developing the framework, based on the literature and tactical level planning processes within three Swedish hospital case studies, the authors bridge gaps between theory and application regarding healthcare capacity planning.

The Folly of Forecasting: The Effects of a Disaggregated Demand Forecasting System on Forecast Error, Forecast Positive Bias, and Inventory Levels

2020 ◽  
pp. 0000-0000 ◽  
Author(s):  
Alexander Brüggen ◽  
Isabella Grabner ◽  
Karen L Sedatole
Keyword(s):  
Forecast Error ◽  
Demand Forecasting ◽  
Coordination Mechanism ◽  
Favorable Effect ◽  
Sales Managers ◽  
Demand Forecast ◽  
Forecast Bias ◽  
Forecasting System ◽  
Manufacturing Organization ◽  
Demand Forecasts

Periodic demand forecasts are the primary planning and coordination mechanism within organizations. Because most demand forecasts incorporate human judgment, they are subject to both unintentional error and intentional opportunistic bias. We examine whether a disaggregation of the forecast into various sources of demand reduces forecast error and bias. Using proprietary data from a manufacturing organization, we find that absolute demand forecast error declines following the implementation of a disaggregated forecast system. We also find a favorable effect of forecast disaggregation on finished goods inventory without a corresponding increase in costly production plan changes. We further document a decline in positive forecast bias, except for products whose production is limited owing to scarce production resources. This implies that disaggregation alone is not sufficient to overcome heightened incentives of self-interested sales managers to positively bias the forecast for the very products that an organization would like to avoid tying up in inventory.

scholarly journals Is Urbanisation Rate a Feasible Supplemental Parameter in Forecasting Electricity Consumption in China?

2016 ◽  
Vol 2016 ◽  
pp. 1-7 ◽  
Author(s):  
Biao Yang ◽  
Yingcheng Li ◽  
Haokun Wei ◽  
Huan Lu
Keyword(s):  
Regression Models ◽  
Electricity Consumption ◽  
Forecast Model ◽  
Electricity Demand ◽  
Shaanxi Province ◽  
Average Error ◽  
Demand Forecast ◽  
Valid Predictor ◽  
The Government

Traditional method of forecasting electricity consumption based only on GDP was sometimes ineffective. In this paper, urbanisation rate (UR) was introduced as an additional predictor to improve the electricity demand forecast in China at provincial scale, which was previously based only on GDP. Historical data of Shaanxi province from 2000 to 2013 was collected and used as case study. Four regression models were proposed and GDP, UR, and electricity consumption (EC) were used to establish the parameters in each model. The model with least average error of hypothetical forecast results in the latest three years was selected as the optimal forecast model. This optimal model divides total EC into four parts, of which forecasts can be made separately. It was found that GDP was only better correlated than UR on household EC, whilst UR was better on the three sectors of industries. It was concluded that UR is a valid predictor to forecast electricity demand at provincial level in China nowadays. Being provided the planned value of GDP and UR from the government, EC in 2015 were forecasted as 131.3 GWh.

A methodology for increasing revenue in fashion retail industry

2018 ◽  
Vol 46 (8) ◽  
pp. 726-743 ◽  
Author(s):  
Samuel Nucamendi-Guillén ◽  
Miguel A. Moreno ◽  
Abraham Mendoza
Keyword(s):  
Time Horizon ◽  
Extensive Study ◽  
Life Cycles ◽  
Second Phase ◽  
Inventory Problem ◽  
Demand Forecast ◽  
Content Type ◽  
Fashion Retail ◽  
Retail Company

Purpose Fashion retail companies typically exhibit short life-cycles, high volatility and low predictability. Therefore, their success is largely determined by the organisation’s flexibility and responsiveness. The purpose of this paper is to present a methodology to facilitate inventory control to minimise both shortages and excess inventory for a multi-product, multi-period finite time horizon inventory problem by using statistical and stochastic analysis. Design/methodology/approach The proposed methodology operates in two phases: the first phase consists on determining an aggregate plan (AP) that will be used for monitoring the behaviour of the items during the time horizon. This plan is obtained by statistically analysing historical data related to sales and inventory shortages and is used to determine a demand forecast during the time horizon that allows to handle with potential disruptions derived from real demand variations. Finally, supply replenishment policies are defined to facilitate the monitoring process during the second phase. For the second phase, the behaviour of real demand for every item is captured into a database and compared against its projected demand (from the AP). If needed, adjustments are made in the procurement of future deliveries to reduce the probability of having shortages and/or excess inventory. Findings A case study in a Mexican fashion retail company was conducted to assess the performance of the methodology. Results indicate that shortage in early periods can be reduced totally for certain products while, for others, the reduction is about 90.5 per cent. In addition, the incomes of the company were increased over 57 per cent. Research limitations/implications Even when the success of the methodology has been shown, cultural and behavioural factors were not considered. An extensive study is suggested to determine if these factors should be included to enhance the performance of the methodology. Practical implications A case study of a Mexican fashion retail company was conducted to assess the performance of the proposed methodology. The methodology is easy to implement and effectively and quickly responds to disruptions in the demand and it also significantly reduces the level of shortages while increasing sales and revenue for the company. Originality/value This paper proposes a methodology that is able to anticipate product’s behaviour from early weeks. Additionally, replenishment policies allow to quickly adjust future orders to guarantee the availability of items and minimise overstock.

Integrated nonlinear daily water demand forecast model (case study: City of Guelph, Canada)

2019 ◽  
Vol 579 ◽  
pp. 124182 ◽  
Author(s):  
Shahrzad Gharabaghi ◽  
Emily Stahl ◽  
Hossein Bonakdari
Keyword(s):  
Water Demand ◽  
Forecast Model ◽  
Demand Forecast ◽  
Model Case ◽  
Water Demand Forecast ◽  
Daily Water

Driving innovation through design-oriented strategies

2017 ◽  
Vol 33 (6) ◽  
pp. 1-3
Keyword(s):  
Product Innovation ◽  
Design Methodology ◽  
Global Market ◽  
Consumer Electronics ◽  
Technical Innovation ◽  
Content Type ◽  
Market Product ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The review is based on “Design-oriented strategy typology and innovation framework” by Hsu (2017). This case study of Taiwanese consumer electronics and computer companies demonstrates how product innovation strategies are being used to develop a competitive advantage that survives in the global market. Product R&D and design tends to focus on “new experience” in aggressive innovation enterprises, “new value” in market innovation enterprises, “new service” in technical innovation enterprises, and “new positioning” in opportunity enterprises. Moving with the market by innovating in one of these ways is the big theme at the heart of the collective achievements of these companies. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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