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Disruptions in information flow: A revenue costing supply chain dilemma

Journal Article


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Abstract


  • The integration of supply chains as a mechanism for value creation is largely dependent on continuous flow

    of real time accurate information from the customer back upstream to the manufacturer. This ideal is often

    unachievable when disruptions in the flow of information and materials are known to regularly occur in some

    manufacturing supply chains. This paper focuses on quantifying the potential lost sales revenue attributed to

    information and material delays in a supply chain using discrete event simulation of the Beer Distribution Game.

    Results indicate a direct relationship between lost sales revenue and delay times. When exposed to several

    levels of delay such disruptions will cause loss of sales revenue. Interestingly, data collected suggests that

    information delays play a larger role than material delays as a contributor to lost sales revenue.

    This study provides a solid platform to further justify the implementation of technology such as RFID in an

    effort to decrease the level of lost sales revenue in manufacturing supply chains. The implementation of

    technologies that will increase the speed of information flow throughout a supply chain as well as increasing

    visibility of inventory in the supply chain can assist to minimise lost sales.

Publication Date


  • 2008

Citation


  • Munoz, A. & Clements, M. D. (2008). Disruptions in information flow: A revenue costing supply chain dilemma. Journal of Theoretical and Applied Electronic Commerce Research, 3 (1), 30-40.

Scopus Eid


  • 2-s2.0-45949107643

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=3125&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/2076

Number Of Pages


  • 10

Start Page


  • 30

End Page


  • 40

Volume


  • 3

Issue


  • 1

Place Of Publication


  • http://www.jtaer.com/portada.php?agno=2008&numero=1

Abstract


  • The integration of supply chains as a mechanism for value creation is largely dependent on continuous flow

    of real time accurate information from the customer back upstream to the manufacturer. This ideal is often

    unachievable when disruptions in the flow of information and materials are known to regularly occur in some

    manufacturing supply chains. This paper focuses on quantifying the potential lost sales revenue attributed to

    information and material delays in a supply chain using discrete event simulation of the Beer Distribution Game.

    Results indicate a direct relationship between lost sales revenue and delay times. When exposed to several

    levels of delay such disruptions will cause loss of sales revenue. Interestingly, data collected suggests that

    information delays play a larger role than material delays as a contributor to lost sales revenue.

    This study provides a solid platform to further justify the implementation of technology such as RFID in an

    effort to decrease the level of lost sales revenue in manufacturing supply chains. The implementation of

    technologies that will increase the speed of information flow throughout a supply chain as well as increasing

    visibility of inventory in the supply chain can assist to minimise lost sales.

Publication Date


  • 2008

Citation


  • Munoz, A. & Clements, M. D. (2008). Disruptions in information flow: A revenue costing supply chain dilemma. Journal of Theoretical and Applied Electronic Commerce Research, 3 (1), 30-40.

Scopus Eid


  • 2-s2.0-45949107643

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=3125&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/2076

Number Of Pages


  • 10

Start Page


  • 30

End Page


  • 40

Volume


  • 3

Issue


  • 1

Place Of Publication


  • http://www.jtaer.com/portada.php?agno=2008&numero=1